Ghanaians 'descend' on SEC over Loom warning

The SEC said the public needs to be cautious of such institutions.

The Director-General of SEC, Daniel Ogbarmey Tetteh, speaking in an interview with Accra-based Citi FM said the commission received a notification of the operations of Golden Empire and Loom and intends to deal with the issue as soon as possible.

"We have received some notifications at the usual channel by which people notify us of these scams. And we will follow our usual due process in advising clients," he said.

He, therefore, called on all investors to always ask questions on what the underlining investment is before getting involved.

Loom is a scheme which targets young people through social media and gets them to recruit other people and invest money, much like a pyramid-selling scheme.

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 with individuals creating their own WhatsApp groups to get individuals to sign on to it.

Some persons on social media descended heavily on the SEC.

Some Ghanaians said "We are looming whether governments and not giving the youth jobs is necessary not this nonsense... "I just cashed out GH¢1600 after investing GH¢200 yesterday, tell me how many people get that salary after a whole month."

Others wrote: "There's risk involve in doing business, either you loss or u gain...so I'm in."

How Loom works

Loom Money Ghana is Pyramid Scheme just like 'peer-to-peer' money-making scheme.

So after investing the GH¢50, you invite friends and families to join. So as more people join, everybody gets his/her GH¢400 — that’s GH¢350.00 of profit on just GH¢50.

A lot of people are giving testimonies that they've gotten their money back with interest so the Loom Money Ghana investment is working.

However, some users in Nigeria have said that it is total scam.