Alaska Department of Law warns against ‘Blessing Loom’ pyramid scheme

Published: Sep. 15, 2020 at 1:31 PM AKDT
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FAIRBANKS, Alaska (KTVF) - The Alaska Department of Law warns Alaskans not to participate in a growing pyramid scheme called “The Blessing Loom.” The scam is currently believed to be operating in multiple communities across the state. The scam often uses a multi-layered octagon board called a “loom.” The layers of the “loom” are sometimes associated with earth, wind, fire, and water.

The scheme is often perpetuated on social media. A new participant will be asked to join a “Blessing Loom” by providing a gift, blessing, or investment of anywhere from $100 to $1,500. Each participant is required to recruit two new members, and promised an eightfold return.

An example of the blessing loom diagram.
An example of the blessing loom diagram.(

However, like all pyramid schemes this scam depends on continuously bringing in a growing number of new participants. Eventually, the pool of new investors dries up and the pyramid crashes, and the majority of people lose money.

“During these difficult times Alaskans should be wary of investment scams,” said Acting Attorney General Ed Sniffen, “if it sounds too good to be true, then it probably is.” Pyramid schemes are illegal under Alaska’s Unfair Trade Practices and Consumer

Protection Act. Under the Act, violators are subject to civil penalties of up to $25,000 per violation. Participants in such schemes may also be subject to criminal prosecution.

The Department of Law encourages people who have participated and obtained earnings in such schemes to refund money immediately. Victims of these or any other unfair trade practices are urged to file a consumer complaint with the Attorney General’s Office.

Go to // for a copy of the complaint form or call 907-269-5200.

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