In a statement, it said it is a Whatsapp group supporting registered members to be financially steady instead of taking "killer" loans from banks and savings and loans companies.

According to the group, if a member is due for payment, all new entrants send the monies direct to the momo (mobile money) number of the said person.

"In the same vain, when it is the turn of the new entrants to receive (cash out) money, all other new entrants pay directly to the member and it goes on and on."

loom statement
loom statement

It also said its operations cannot be illegal because it is not a deposit taking institution.

It also urged its members on Whatsapp to remain calm and continue to push and add people to the loom.

In a statement on Friday, EOCO said Loom is a "scam" and "the general public is cautioned to desist from investing and patronizing the Loom."

“Anyone who transacts business with the Loom does it at their own risk,” EOCO further warned.

“The Economic and Organised Crime Office in line with its mandate to prevent and detect organised crime will continue to monitor developments with online investments with the view to ensure that citizens are protected from scammers and fraudsters.”

Loom is a peer-to-peer scheme which involves people being invited to invest as little as GHC20 with the promise of a return eight times its value within a short period of time.

It was first discovered in the UK and it is now circulating across the globe with different names such as “loom circle” or “fractal mandala” or “Loom Money Nigeria.”

The scheme is targeted at a younger demographic of victims who are willing to part away with money on cyberspace, according to EOCO.