Wednesday, November 23, 2016
Beware of the Blessing Loom
If you search “blessing loom” on Facebook today, you will see that over 47,000 people are talking about it.
According to a recent CBS2 article, this scam begins when you receive an invitation to the Whatsapp phone app, with a link to your loom.
While the amounts on the posts may differ, the idea behind the Blessing Loom is that if you contribute $100 and recruit 2 friends, you have a chance to receive $800. But the downside that warrants extreme caution is that you could likely not receive the promised payback.
The FTC declares that pyramid schemes, like the Blessing Loom, are illegal. This is because “they promise consumers or investors large profits based primarily on recruiting others to join their program, not based on profits from any real investment or real sale of goods to the public”, making them appealing to people who want to make some quick cash.
While it is fine to be philanthropic during the holiday season, you should be cautious about who you are gifting money to. One simple way to make sure that you are gifting money to the right person or cause is to do your research. If you are intending to gift money to a particular person, it’s much safer to do so with cash or a gift card in a traditional card.
A few additional tips on giving during the holidays, from a past Daily Dupaco blog include:
Member financial security is Dupaco's number one priority, so be weary of any online offers that seem too good to be true. And if you have, or think you have, become a victim of fraud, please contact Dupaco immediately at 563-557-7600 / 800-373-7600, ext. 0.
by Melissa Kuhl