Nigerians have been warned to stay off Loom Money Nigeria by the Securities and Exchange Commission, SEC, who alleged that it is being ran by fraudsters. According to Mary Uduk, acting director-general of the commission, the scheme targeted young people, luring them to participate in a pyramid model of the Ponzi. In a news conference in which she was represented by Efe Ebelo, SEC’s head of media, she stated that Loom Money Nigeria had taken over the social media.

She further revealed that those behind the ponzi scheme “carry out their illegitimate activities” via social media platforms like Facebook and WhatsApp, and they lure young Nigerians to invest as low as N1,000 and N13,000 and to get as much as eight times the value of the investment in 48 hours. The SEC who warned Nigerians to stay off Loom Money Nigeria which has no tangible business model, said;

“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.”