The Securities and Exchange Commission (SEC) has raised the alarm over the activities of some fraudsters currently running an online investment scheme tagged ‘Loom Money Ghana’.
Loom Money Ghana is taking over social media by targeting young people to participate in a pyramid scheme.
“The activities of an online investment scheme tagged ‘Loom Money Ghana’. 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 10GHC and GHC2,000 and get as much as 8 times the value of the investment in 48 hours.
“Unlike Menzgold,Earnit,SnarpEarn and Boostpall 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.
“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.”
SEC,has therefore, advised the general public to distance themselves from the scheme, adding, “Please note that anyone that subscribes to this illegal activity does so at their own risk.”.
A Ponzi scheme is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors.