October 20, 2021
Scam/Fraud

Social media investment scam targets Black Americans

  • Randy Hutchinson is the president of the Better Business Bureau of the Mid-South. Reach the BBB at 800-222-8754.

The FTC issued an alert in May 2020 about a chain letter scam called a “blessing loom.” Our national office sent out a similar warning. I read both alerts, couldn’t quite understand how the scam worked, and decided it sounded so silly that it wasn’t worth writing a column about. 

I’ve had to rethink that decision now that the FTC and the state of Arkansas have sued the operators of a blessing loom investment program they allege has bilked thousands of consumers out of tens of millions of dollars.

The FTC says it’s nothing more than a pyramid scheme and that it targets African Americans struggling financially during the COVID-19 pandemic.

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