Not just Loom, here are other deadly Ponzi schemes that defraud Nigerians

Binomo social media scam

Despite all the warning from several quarters, many Nigerians are signing up to invest in Loom, a Ponzi scheme that is driven on social media and mobile messaging platforms.

Promoters of Loom Ponzi scheme use mainly WhatsApp, a Facebook Inc. messaging platform that has more than 90 million Nigerians as users.

The popularity of Loom has been attributed to its strategy to target mostly less-sophisticated investors and mostly young people who have less knowledge about financial services and planning.

Investment analysts who spoke to PageOne.ng said the strategy of Loom is very effective because they target ‘impressionable and less-sophisticated’ people who have financial needs.

What is a Ponzi scheme?
A Ponzi scheme is a scam whereby old investors are paid with proceeds of investment from old investors. Because the scheme requires newer investors, it often ends up collapsing leaving fresh investors with huge losses.

Many of them are ponzi scams, pyramid schemes and cryptocurrency schemes that require its members to buy packages into a fake digital currency that has no value outside of the group.

While many have collapsed, many others are being started every day. PageOne.ng does not support or back any Ponzi scheme and we advise our readers to stay away from them.

We have updated the lists of many Ponzi schemes that you should be wary of getting involved in. See the list below and feel free to share this article with your friends and loved ones.

[table id=10 /]

Share:

Leave a Reply

Your email address will not be published. Required fields are marked *