SEC warns Nigerians against investing in ‘Loom Money Nigeria’ another Ponzi scheme

SEC warns Nigerians against investing in ‘Loom Money Nigeria’ another Ponzi scheme

The Securities and Exchange Commission on Thursday warned Nigerians to be wary of fraudsters currently running an online investment scheme, “Loom Money Nigeria,’’ which targets young people, luring them to engage in the pyramid ponzi scheme.

According to the commission, young Nigerians are lured 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 through social media platfroems like Facebook and WhatsApp

The acting director-general of the commission, Mary Uduk gave the warning at a news conference in Abuja on Thursday.

Uduk’s warning was contained in a statement by Efe Ebelo, SEC’s head of media.

She 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.”

“They lure the investing public to participate by joining various Loom WhatsApp groups to invest as low as N1,000 and N13,000 and get as much as eight 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.”

Uduk, therefore, advised the public to distance themselves from the scheme, stating that anyone that subscribed to the illegal activity did so at his or her own risk.

It will be recalled that Nigerians in 2017 lost billions of Naira to similar scheme, MMM Nigeria despite repeated warnings from SEC and the Central Bank Nigeria against investing in the scheme.