The Nigerian Securities and Exchange Commission, SEC, has issued formal warning on Loom Money Nigeria, a popular Ponzi scheme targeting young Nigerians.
The SEC in a fraud alert that Loom Money Ponzi scheme has in recent time become very popular with its focus on young Nigerians who are lured to invest between N1,000 to N2,000 to get exponential returns with the 48 hours.
The Commission said the scheme makes use of social media platforms such as Facebook and WhatsApp to canvass for investors. The SEC warned the members of the public to be wary of getting involved or investing in the scheme.
Loom Money Nigeria is getting popular less than two years after MMM Nigeria and a coterie of other Ponzi schemes collapsed, leading losses in the region of billions.
The latest report by PageOne’s BadMarket team shows that Loom Ponzi scheme is not in any way new. The scam started as far as 2016 in the United States when MMM Nigeria was raking in members. One Derek Loom started the scam calling it Blessed Loom.
He has since been arrested and he is to face fraud charges.