Friday , March 29 2024

LOOM: A SCAM OR A SAVIOR?

The idea of loom was quite obscure among Ghanaians until recently. It has become common among most Ghanaian youth as a peer-to-peer pyramid ponzi scheme, giving them the opportunity to make ‘quick money’.

The scheme has gain popularity on most social media platforms all over the world with names such as loom circle, fractal mandala and blessing loom. The pyramid is initiated when one person invests at least Gh20 and convinces friends and family to join. This creates an automatic loom circle with their names thereby, increasing the players chances of getting huge sum of money. Although it is seen as a quick way of making money, those who indulge in the scheme eventually lose their money.

As a result, the Security and Exchange Commission (SEC,) has advised the public to disengage from the scheme since it is an illegal entity. According to an article published on myjoyonline.com on the 11th of June, 2019, the Director General of SEC, Rev. Daniel Tetteh, advised the public to be conscious of the scheme so that others will not scam them.

According to the report, he said, “We have received some notice from people through our channels by which people notify us of this scheme and we will follow due process to deal the matter.” Some may view loom as one big time opportunity to make money but, the risk involved is very huge and for that matter an unlicensed company. The public is therefore encouraged not to entertain people who engage in the game.

Story by: Benjamin Brew Sam-Paintsil

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