What Is Loom Money?
There is a new craze in town and i believe this will answer the questions people are asking online with regards to what Loom Money is and what i know about it.
There have been warnings of an international online scam called the “Loom”/Loom Money scheme in Ghana, which targets young people through social media and can lead to participants “scamming” their family and friends and leaving them hundreds of dollars out of pocket.
The scheme was first reported in the UK and is now circulating on social media platforms in Ghana, with users asked to invest as low as Ghc50 with the promise they will make eight times the amount once they recruit family and friends within 48hrs.
Loom money scam gets people to recruit other people and invest money, much like a pyramid-selling scheme
The scheme is spread through social media platforms, which means many people do not realise they are being scammed.
Many people would be left hundreds of cedis out of pocket once they ran out of friends and family to recruit.
According to the US Securities and Exchange Commission, a Ponzi scheme is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors.
“In many Ponzi schemes, the fraudsters focus on attracting new money to make promised payments to earlier-stage investors to create the false appearance that investors are profiting from a legitimate business,” the SEC explains.
The Loom Pyramid Scheme is not new to the world. Last month, Daily Mail UK reported that the scheme has resurfaced online all over the world, with different names such as ‘loom circle’, ‘fractal mandala’ and ‘blessing loom’. In Ghana, its central name is Loom Money Ghana with individuals creating their own WhatsApp groups such as Asamoah Loom, Kojo Loom among others.
I guess this post answered the question, “What is Loom Money?”.
Simply put, don’t be tempted to join loom money scheme, you will bite your fingers soon.