Loom money: Nigerians complain as new Ponzi scheme slows down
The Securities and Exchange Commission had warned Nigerians over an online investment scheme, called ‘Loom Money Nigeria’.
Before MMM finally crashed in the early months of 2017, members were noticing a slow movement in the rate at which the Ponzi scheme was paying. Suddenly, their fears were confirmed as the scheme crashed.
It appears same fate is about to befall Look Money Nigeria as members are beginning to whisper fears about the slowness in cashing out.
This is all happening three weeks after the Securities and Exchange Commission (SEC) warned Nigerians to run away from Loom Money Nigeria which they termed as an online fraud packaged as investment scheme.
This was made known by the Acting Director General of SEC, Ms Mary Uduk, who stated that Loom Money Nigeria is a pyramid scheme which targets youths whom she believes will get their hands burnt if they fall for it.
Decribing it as a Ponzi scheme, Uduak said:
“We are aware of the activities of an online investment scheme tagged ‘Loom Money Nigeria’. The platform has embarked on an aggressive online media campaign on Facebook and whatsapp to lure the investing public to participate by joining various Loom whatsapp groups to invest as N1000 and N13,000 and get as much as 8 times the value of the investment in 48 hours.
“Unlike MMM that had a website and known promoter, the people promoters of Loom are not yet known and this pyramid scheme operates through closed groups mainly on Facebook and Whatsapp. If it were a local Ponzi scheme with known offices, it would be very easy for the Commission to seal their offices and freeze their accounts…”
“We therefore wish to notify the investing public that the operation of this investment scheme has no tangible business model hence it’s a Ponzi scheme, where returns are paid from other people’s invested sum. Also, its operation is not registered by the Commission. ”
Uduk, therefore, advised the general public to distance themselves from it: “Please note that anyone that subscribes to this illegal activity does so at their own risk.”