Ponzi scheme: SEC warns Nigerians against Loom Ponzi scheme

Ponzi scheme: SEC warns Nigerians against Loom Ponzi scheme

Security and Exchange Commission (SEC) has cautioned Nigerians against some internet fraudsters who are currently running an investment called “loom Money Nigeria“.

The investment scheme (Loom Money Nigeria) is currently taking over the internet, tempting Nigerians to take part in the scheme.

Acting Director General of SEC, Mary Uduk, who was represented at a press conference in Abuja on Thursday, said that those who are currently investing in the Ponzi scheme were at risk.

The acting DG noted that the fraudsters carry out their illegal business through some social media platforms such as, Facebook and Whatsapp, luring youths to invest as low as 1,000 naira to 13,000 naira and get 8 times of their investment with 2 days.

In her words “We are aware of the activities of an online investment scheme tagged “Loom Money Nigeria”. The platform has went on an aggressive media campaign on Facebook and whatsapp to lure investing public to participate by joining various loom whatsapp groups.

“Unlike MMM that had a website and the promoter known, the people promoting loom are not yet known and this pyramid scheme through closed groups mainly on facebook and whatsapp. If it were a local Ponzi scheme with known offices, it would have been 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 is a Ponzi scheme where returns are paid through other people’s investment sum. Also it’s operation is not registered by the commission”, she said in conclusion

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