THE Securities and Exchange Commission has warned Nigerians against fraudsters running an online investment scheme tagged “Loom Money Nigeria’’.
Acting Director-General of the commission, Ms Mary Uduk at a press conference in Abuja disclosed that the fraudsters operate their illegitimate activities via social media platforms like Facebook and whatsapp.
The commission’s Head of Media, Mrs Efe Ebelo, said Uduk, represented by acting Executive Commissioner, Operations of SEC, Mr Isyaku Tilde, noted that the fraudster has taken over the social media luring young people to participate in a pyramid model of the Ponzi.
She added that they lured young Nigerians to invest as low as N1000 and N13, 000 and to get as much as eight times the value of the investment in 48 hours.
Uduk said that the venture was a Ponzi scheme, where returns would be paid from other people invested funds, adding that it had no tangible business model.