SEC Speaks On Loom Nigeria Ponzi Scheme

The Securities and Exchange Commission (SEC), has warned Nigerians on the dangers of getting involved in the Loom Nigeria Ponzi scheme.

Ms Mary Uduk, the acting Director-General of the commission, gave the warning during a news conference on Thursday in Abuja.

A statement made available to newsmen by SEC’s Head of Media, Mrs Efe Ebelo, disclosed that Uduk, who was represented by acting Executive Commissioner, Operations of SEC, Mr Isyaku Tilde, lamented that Loom Money Nigeria is not registered by the commission and the owners are not known.

She emphasized that the scheme has taken over the social media particularly Facebook and Whatsapp, making it easy to be used by fraudsters.

Loom Money Nigeria Ponzi scheme, asks participants to invest as low as N1000 and N13,000 and to get as much as N8,000 and N104,000 respectively.

“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.