A scam scheme called “loom circle” or “fractal mandala”, promoted to social media users, promises potential victims some 1280 GBP in return of a 160 GBP “investment”, BBC reports.
The pyramid scheme is circulating newsfeeds and the target group seem to be young people under the age of 30.
Basically we are speaking about an old fashioned pyramid repackaged for the younger generation, most of which might have never heard about it.
You are asked to invest 160 GBP upfront with the promise to receive 8 times more. After you join the pyramid with your initial investment, than you are expected to recruit more participants, who will eventually pay some of your money back.
The weak link with any pyramid is that for every one to make profit, there should be an infinite number of new members.
Action Fraud, the British National Cyber Crime and Reporting Centre, says they have noticed a rise in the so called “investment schemes” being advertised on the social media channels. The agency warns that people who are most at risk are in their 20s, and who have never heard about financial pyramids before.