The Economic and Organised Crime Office (EOCO) has issued a Press Statement warning the general public against the new money scheme- Loom Pyramid Scheme.
In a statement by EOCO noted the scheme was a scam and hence has not been approved by state regulators.
“The Economic and Organised Crime Office has for some time now been monitoring the new trend of “susu” investment online called LOOM. It is a ‘scam and the general public is cautioned to desist from investing and patronizing the Loom. Therefore, anyone who transact business with the Loom does it at their own risk. The Loom gets people to recruit other people to invest money, much like a pyramid-selling scheme. The loom sits in a circle and every time a new person is recruited, others are pushed closer to the centre of the circle where they are promised a payout.
“However, if people are unable to find investors and move closer to the centre of the circle, the last people to invest lose their money. There is no actual product coming from the scheme and is only beneficial for people who get in early because everyone else pays up the chain. It is just a pyramid scheme disguised as something new. The scheme is targeted at younger demographic of victims who are willing to part away with money on cyberspace.
The general public is hereby duly warned,” the statement noted.