Financial clouds loom over young Queenslanders

A scam which targeted young people via social media and promised fast cash has emerged prompting a warning from RACQ Bank that it could lead to financial hardship.

The ABC reported the scheme was found online globally but ran under a variety of names which included ‘loom circle’ and ‘blessing loom’.

RACQ Bank spokesperson Clare Hunter said it was similar to many pyramid schemes but this one was particularly concerning as it targeted the young and inexperienced.

“The ‘loom’ craze promises people can make up to $2,400 for an outlay of $300, simply by encouraging friends and family to get involved,” Ms Hunter said.

“While it might seem attractive it’s actually quite dangerous.

“The truth is you’ll almost certainly lose your money and on the off-chance you don’t – someone you’ve encouraged to join will.”

Ms Hunter encouraged people looking to get ahead to instead take a ‘get rich slowly’ approach.

“Make the most of any pay rise, tax refund or other lump sum that comes your way,” she said.

“Saving each time you get paid is also a good idea. Even $5 or $10 will make a difference if you’re strict with yourself and do it every time.

“Over time you will be able to save even more than this but only if you already have the habit in place.”