The Securities and Exchange Commission, SEC,has come out to give strict warning to Nigerians practicing Loom Money, saying that it is being run by fraudsters. While speaking on the matter, the Acting director-general of the commision, Mary Uduk, revealed that fraudsters are those behind Loom money and the scheme targets.
She made the statement in a news conference where she was represented by Efe Ebelo, SEC’s head of media. She added that those behind the ponzi scheme “carry out their illegitimate activities” via social media platforms like Facebook and WhatsApp, and they lure young Nigerians to invest as low as N1,000 and N13,000 and to get as much as eight times the value of the investment in 48 hours. The SEC who warned Nigerians to stay off Loom Money Nigeria which has no tangible business model.
“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.”