The Economic and Organised Crime Office (EOCO) has warned the general public to desist from investing and patronizing a new pyramid scheme called Loom, saying it is a scam.
A press release signed by the Jacqueline Avotri, EOCO’s Head of Public Affairs, on behalf of the Executive Director, stated: “EOCO 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 others to invest money in a pyramid-selling scheme, where members are promised a payout as new members join the cycle.
“If people are unable to find investors and move closer to the circle, the last people to invest lose their money”, the statement said, adding that it is only beneficial to just the first few investors to join.
Despite an earlier warning in the week by the Securities and Exchange Commission (SEC) against the scheme, it is still receiving patronage by many, as conversations about loom has been trending on social media platforms like especially Facebook and WhatsApp throughout the week.
As part of its mandate to prevent and detect organised crime, EOCO has assured that it will continue to monitor developments with online investments to ensure that citizens are protected from scammers and fraudsters.