The Acting Director General of the Securities and Exchange Commission (SEC), Mrs Mary Uduk, in a joint press conference with the Minister of Finance, Mrs Zainab Ahmed in Abuja warned Nigerians against the activities of the fraudsters behind latest Ponzi Scheme in the country called Loom Money Nigeria
The Acting DG who was represented by the Acting Executive Commissioner of Operations of SEC, Mr. Isyaku Tilde, warned that the promoters of the scheme are not known as they operates their illegitimate business via social media platforms such as Facebook and WhatsApp only without any tangible address otherwise the Commission would have taken actions on them.
According to the her, Loom Money Nigeria targets young Nigerian, luring them to invest N1,000 and N13,000 to get as much as 8 times the value invested within 48 hours.
“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 low as N1,000 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 promoters 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.”
Loom Money Nigeria