Loom is a scam – EOCO | Economic news

The Bureau for Combating Organized and Economic Crime (EOCO) has warned the public not to invest in the unlicensed investment system known as Loom.
In a press release, EOCO described Loom as a scam, adding that it was a "pyramid scheme disguised as something new".

"The Office of Combating Organized and Economic Crime has been monitoring the new online investment trend called LOOM for some time," the statement said.

"It's a scam and the general public is asked to refrain from investing and patronizing with loyalty, so anyone who deals with Loom does so at their own risk."

Explaining the operation of this program, EOCO said it was addressing a younger population, more likely to part with the money on cyberspace. He adds that the system does not exchange any product and is only beneficial for people who arrive early.

"The loom sits in a circle and every time a new person is recruited, others are pushed closer to the center of the circle where they are promised a payoff.However, if people are unable to find investors and get closer to the center, the last people to invest lose their money "".

On 11 June, the Security and Exchange Commission warned the public against Loom's favoritism because Loom is not allowed to operate in the capital market.