Loom Money Ghana is a scam – EOCO warns

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3news.com reports that The Economic and Organized Crime Office (EOCO) is warning the general public to desist from transacting business with new online investment platform, Loom Money Ghana.

Loom Money Ghana has been very visible on several social media platforms including Twitter and WhatsApp with promotions calling for people to get on-board, invest and walk away with huge returns.

There has been a lot of buzz about the new platform with some Ghanaians already engaged in the scam.

READ ALSO: All you need to know about Loom Money Ghana

In a release signed by its Head of Public Affairs, Jacqueline Avotri, EOCO stated that it has been monitoring activities of the online platform for some time now, and warned that it is not credible.

Jacqueline Avotri
Jacqueline Avotri

“It is a scam and the general public is cautioned to desist from investing and patronizing the Loom. Therefore anyone who transacts business with the Loom does it at their own risk,” EOCO warned.

According to EOCO, Loom gets individuals to recruit people to invest money, which is like a pyramid-selling scheme.

“There is no actual product coming from the scheme and is only beneficial for people who get in early because everyone else pays up the chain. It is just a pyramid scheme disguised as something new.”

The anti-graft agency also stated that Loom is targeted at young people, and warned the youth not invest with the online company.

EOCO further noted that it will continue to monitor developments to ensure citizens are protected from fraudsters and scammers who disguise themselves a investment companies.

The Security and Exchange Commission on June 11 cautioned the public that the Loom is not licensed to operate in the capital market.

READ ALSO: Video of a Ghanaian basic school teacher teaching his pupils how to pronounce ‘Loom’