$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
blessing loom scam
The blessing loom is a pyramid scheme presented as a board or flower diagram where participants pay to enter and are promised a large payout when enough new members join below them.
“pyramid scheme”
↓ 8%Key indicators
Usually targetsLow-income households
Often hitsFreelancers and contractors
Common regionUnited States
Last updated2026-04-04
Estimated impact
$6.0K
median reported loss
Typical range$600 – $120K
Recovery rate~8%
Annual reports11,000
Scam breakdown
1
The loom is structured with one person at the center, two at the next ring, four at the next, and eight at the outer ring, each paying to join
2
When the person at the center collects payments from all participants, they exit and the loom splits into two new looms requiring more recruits
3
Each split doubles the number of new participants needed, making it mathematically impossible for most people to ever reach the center and collect
What to do first
Recognize that the blessing loom is an illegal pyramid scheme regardless of the language used to describe it
Related terms
loom circlemandala scamflower board scamPonzi and pyramid schemesWhatsAppStableLow-income householdsWomenYoung adultsFreelancers and contractorsEducators and studentsInvestors and tradersUnited StatesUnited KingdomTrinidad and Tobagoloom circlemandala scam
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Maria, 35, a low-income households, encountered what appeared to be a legitimate ponzi and pyramid schemes situation while using WhatsApp. The loom is structured with one person at the center, two at the next ring, four at the next, and eight at the outer ring, each paying to join
Step 2
What happened next was calculated: When the person at the center collects payments from all participants, they exit and the loom splits into two new looms requiring more recruits
Step 3
The pressure escalated quickly: Each split doubles the number of new participants needed, making it mathematically impossible for most people to ever reach the center and collect
The outcome
Maria realized something was wrong when diagram shows you at the outer ring with a path to the center where you collect a large payout. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Recognize that the blessing loom is an illegal pyramid scheme regardless of the language used to describe it Maria's experience shows why diagram shows you at the outer ring with a path to the center where you collect a large payout and you must recruit two or more people who each pay the same entry fee to advance to the next level are the clearest early warning signs.
How to identify it
- Diagram shows you at the outer ring with a path to the center where you collect a large payout
- You must recruit two or more people who each pay the same entry fee to advance to the next level
- Organizers claim it is not a pyramid scheme because it is a gift and not an investment
- Pause before paying, clicking, or sharing information. Scammers rely on speed.
- Verify the sender, company, or agency using a phone number or website you already know is legitimate.
- Treat secrecy, urgency, and off-platform payment requests as strong scam signals.
What to do now
- ✓Recognize that the blessing loom is an illegal pyramid scheme regardless of the language used to describe it
- ✓Do not participate even if friends or family members are promoting it
- ✓Report the scheme to the FTC and warn others in your community about how it works
What to save before reporting
- ✓Save the message, profile, phone number, email, or URL that was used.
- ✓Keep payment confirmations, receipts, and account alerts before you dispute or delete anything.
- ✓Write down the timeline while the details are still fresh.
- ✓Save the full chat or call log before blocking the sender so the reporting path still has the original context.
How big is this problem
You are not alone — this scam affects millions of people.
These numbers come from government agencies and official reports. If you have been affected, know that this is a widespread problem — not something that only happens to careless people.
FTC 2024 fraud losses
Imposters
Most common FTC fraud category in 2024
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
- This scam family tends to persist because the social-engineering pressure works even when the exact scripts, platforms, and payment methods change.
- The specific packaging evolves over time, but the core pattern usually stays the same: create urgency, control the channel, and push action before verification.
- Multiple state attorneys general have issued warnings about the blessing loom, confirming it is an illegal pyramid scheme, and participants can face criminal charges
Recovery and follow-up
- ✓Save the messages, receipts, account alerts, and transaction details before you block or delete anything.
- ✓Report the scam through the official platform or government channel that best matches where it happened.
- ✓Recognize that the blessing loom is an illegal pyramid scheme regardless of the language used to describe it
- ✓Do not participate even if friends or family members are promoting it
- ✓Report the scheme to the FTC and warn others in your community about how it works
Why this pattern keeps working
Even when the story changes, most scams still use the same pressure pattern: urgency, authority, and a request to move money or data fast.
Multiple state attorneys general have issued warnings about the blessing loom, confirming it is an illegal pyramid scheme, and participants can face criminal charges
BBB Scam Tracker 2025
Where to report it
If you have been targeted by this scam, reporting it helps authorities track the pattern and protect others. United States has dedicated agencies that handle fraud reports.
ReportFraud.gov
Federal Trade Commission
Central U.S. consumer fraud reporting portal.
File an IC3 complaint
FBI Internet Crime Complaint Center
FBI portal for internet-enabled crime reports.
Start identity theft recovery
IdentityTheft.gov
Official U.S. identity theft recovery plan builder.
Explore further
Understand the bigger picture
Who is most at risk
Who this scam targets
Primary targets
Low-income households, Women, Young adults
Geographic concentration
United States, United Kingdom, Trinidad and Tobago
Primary channel
WhatsApp — Ponzi and pyramid schemes
Why this group is vulnerable
Low-income households are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The ongoing nature of reports suggests that awareness among this demographic remains low.
Sources and methodology
How we verify this information
OpenScam tracks scam patterns using a combination of government consumer protection databases (FTC, IC3, Action Fraud), platform-specific fraud reports, and verified consumer complaint data. Each entry is cross-referenced against at least two independent sources before publication.
Severity ratings are based on financial impact potential, reversibility of damage, and volume of reports across multiple reporting channels. Trend velocity reflects the rate of change in report volume over the most recent 90-day window.
This page was last verified on 2026-04-04. Red flags, recovery steps, and reporting resources are reviewed quarterly against current agency guidance.
Evidence and indicators
- Multiple state attorneys general have issued warnings about the blessing loom, confirming it is an illegal pyramid scheme, and participants can face criminal charges
Source notes
- BBB Scam Tracker 2025
Frequently asked questions
Common questions about blessing loom scam
How does the blessing loom scam work?+
The loom is structured with one person at the center, two at the next ring, four at the next, and eight at the outer ring, each paying to join When the person at the center collects payments from all participants, they exit and the loom splits into two new looms requiring more recruits Each split doubles the number of new participants needed, making it mathematically impossible for most people to ever reach the center and collect
What are the warning signs of blessing loom scam?+
Diagram shows you at the outer ring with a path to the center where you collect a large payout You must recruit two or more people who each pay the same entry fee to advance to the next level Organizers claim it is not a pyramid scheme because it is a gift and not an investment
What should I do if I encounter blessing loom scam?+
Recognize that the blessing loom is an illegal pyramid scheme regardless of the language used to describe it Do not participate even if friends or family members are promoting it Report the scheme to the FTC and warn others in your community about how it works
Who is most at risk for blessing loom scam?+
This scam primarily targets Low-income households, Women, Young adults. It is most commonly reported in United States, United Kingdom, Trinidad and Tobago and typically appears on WhatsApp.
Is blessing loom scam still active?+
blessing loom scam is currently on our watch list. It has been reported across US, UK, TT. Last updated 2026-04-04.
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Help someone avoid this scam.
Scammers succeed because people do not talk about it. If you or someone you know has been affected, there is no shame in it — it happens to millions of people every year. Share this page with friends and family so they know what to look for.
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