Avoid the loom, it's a big scam – EOCO

General News of Saturday, June 15, 2019

Source: dailyguidenetwork.com

2019-06-15

The Bureau of Combating Organized and Economic Crime (EOCO) has warned the general public against any financial transaction with Loom Money, a supposed online investment business "susu".

There has been a social media storm about Loom since its introduction.

But EOCO, in a statement dated June 14, 2019 and signed by its public affairs officer, Jacqueline Avotri, revealed that she (EOCO) had been monitoring for some time the new trend of "online investing" called Loom Money.

According to EOCO, in its statement, "LOOM is a scam and the general public is asked to refrain from investing and patronizing the loom".

He revealed that "the loom encourages people to recruit other people to invest money, much like a pyramid scheme".

He explained that "the loom sits in a circle and every time a new person is recruited, the others are pushed closer to the center of the circle where they are promised a payment."

However, he said "if people are unable to find investors and get closer to the center of the circle, the last investors have lost their money".

"There is no real product from the program and it's only beneficial for people who come in early because everyone else is paying for it," the statement said.

Who is the target for?

The plan, says the release, is aimed at young people who are willing to part with money in cyberspace.

How does the loom money work?

DGN Online determined that the pyramid level of the loom pattern was in four locations.

It is represented by colors – purple, blue, orange and red.

Each time eight people join the group, the center person (usually in the red dot) gets the target amount of GH ¢ 400.00 and, after investing 50.00 GHC, gives the person next.

At this point, as DGN Online surveys reveal, the loom would be divided into two groups.

The upper half and the lower half then become new groups and everyone goes to the next level.

This "means that people in purple turn blue, those in blue to orange and those in orange to red (final phase and cashing phase)."

DGN Online is informed that Loom Money Ghana is promising a cash reward of 400 ¢ GH for the payment of 50.00 GH ¢.

Origin

In his statement, EOCO revealed that Loom Money had been discovered for the first time in the UK and that it was now circulating around the world under different names such as Loom Circle, Fractal Mandala, Blessing Loom and Loom Money Nigeria .

warnings

On June 11, 2019, the Security and Trade Commission, recalling the statement, warned the public that Loom was not allowed to operate in the capital market.

The Bureau for Combating Organized and Economic Crime, in keeping with its mandate to prevent and detect organized crime, will continue to monitor the evolution of online investments to ensure the protection of citizens against fraudsters and fraudsters.

The statement cautioned that "therefore, anyone who deals with Loom does so at their own risk."

Past experiences

EOCO has, in the past, warned the general public to refrain from conducting financial transactions with certain institutions.

Menzgold Ghana Limited, the former collector of gold collectors, is one of these companies.

Even though EOCO and SEC have warned the public against any dealings with Menzgold Ghana Limited, thousands of Ghanaians have stubbornly decided to do business with it.

They ended up having their funds stuck at Menzgold after it closed and have since struggled to recover their investments.

Challenge

Surprisingly, some 'Loomers' in Ghana have criticized the Securities and Exchange Commission for warning them of the threat.

They used social media to blow up the Commission, daring to continue to emerge.

A Ghanaian playmaker wrote in defiance of the SEC's warning: "I just paid 1,600 GH ¢ after investing 200 GH ¢ yesterday, tell me how many people get that salary after a whole month."

Another wrote, "There is a risk to doing business, either you lose or you win … so I'm here."