SEC alerts Nigerians on Loom Money Ponzi scheme

The Securities and Exchange Commission (SEC) has called on Nigerians to be aware of a Ponzi-scheme known as ‘Loom Money Nigeria’.

Okay Nigeria learned that Loom Money Nigeria is taking over social media by targeting young people to participate in a pyramid scheme.

Ms. Mary Uduk, the Acting Director General of the SEC, while speaking to newsmen during a press conference on Thursday cautioned Nigerians of the fraudulent activities of Loom promoters.

Mr. Isyaku Tilde, who represented Uduk at the press conference said, the fraudsters carry out their illegitimate business activities via social media platforms like Facebook and Whatsapp luring young Nigerians to invest as low as N1000 and N13,000 and get as much as 8 times the value of the investment in 48 hours.

Uduk 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 the promoter known, the people promoting 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.”

“Please note that anyone that subscribes to this illegal activity does so at their own risk,” she warned.

It can be recalled that Okay Nigeria had earlier warned the public of Loom Money.

Saddam Yusuf Saleh

Saddam Yusuf Saleh was born and brought up in Katsina, he is a BSc holder from Ahmad Bello University Zaria. The founder of northern youth restoration movement and the pioneer chairman Funtua youth united for development. He is currently a reporter for Okay Nigeria (Okay.ng)
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