Are you tempted to play “The Circle Game,” join a “Blessing Loom,” or jump on a “Money Board”? These are some of the names for an online scam that’s making the rounds at a time when millions of people are out of work and scraping for cash. It promises a big return for a modest investment. Don’t fall for it. You’re virtually guaranteed to lose your money, or pull in friends and family who will lose theirs.
Also known as the “Mandala Game,” “Blessing Circle,” “Infinity Loom,” “Giving Circle,” and by other names, the scam is a chain letter-type of pyramid scheme. While versions vary slightly, the one we’re hearing about most promises that you’ll collect $800 for an investment of $100 and, at the same time, help bring good fortune to someone else by recruiting them to join. Here’s how it works.
You see a post or get a direct message on Instagram, Facebook, or other social media. It invites you to join the Circle or Loom by sending $100 through PayPal or another digital payment service to the person whose name is at the center of an octagon-shaped playing board. Your payment gets you one of eight spots on the outer ring of the board and a chance to move towards the center by recruiting other people to join. As more people join, your board changes and the number of playing boards expands. Eventually, you’re supposed to land at the center of a playing board and collect $100 from each of eight new recruits on the outer ring. That’s when you leave the game or start all over again with another $100 payment.
What’s the harm? Like other types of pyramid schemes, these chain letters depend on recruiting new people to keep money flowing into the enterprise. There are no products sold or real investments creating profits. Once players run out of new recruits to bring into the game, the money dries up and everyone waiting to reach the center comes up empty handed.
If you get an offer to join an online game like this, beware – it’s a scam. The warning signs? Promises that you will make money by paying in yourself and recruiting others to do the same. If the offer comes from a friend or family member, warn them. And, if you’ve paid someone to join this game, please tell us: ftc.gov/complaint. Your report can help us protect others from a scam.
The purpose of this blog and its comments section is to inform readers about Federal Trade Commission activity, and share information to help them avoid, report, and recover from fraud, scams, and bad business practices. Your thoughts, ideas, and concerns are welcome, and we encourage comments. But keep in mind, this is a moderated blog. We review all comments before they are posted, and we won’t post comments that don’t comply with our commenting policy. We expect commenters to treat each other and the blog writers with respect.
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- We won’t post comments that include personal information, like Social Security numbers, account numbers, home addresses, and email addresses. To file a detailed report about a scam, go to ReportFraud.ftc.gov.
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In reply to Another on-line scam why not by Cathy
You can also report scams to the Federal Trade Commission, a federal law enforcement agency, which operates the Consumer Sentinel Network. See a list of the federal and state agencies that use the Sentinel network for investigations and law enforcement activity nationwide.
You can contribute your report at www.FTC.gov/Complaint.
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