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Loom: Another Ponzi scheme resurfaces after MMM




Loom, a new Ponzi scheme which has been described by a top-notch media as a new dangerous money-making scam, is presently taking over the Nigerian internet, targeting young people on social media.

According to Daily Mail, ‘the scheme has surfaced online all over the world, with names such as ‘loom circle’,  ‘fractal mandala’ and ‘blessing loom’.

It was gathered that the first step of the process is being invited to join a WhatsApp group chat, usually by a friend or relative.

Then you are asked to ‘invest’ N1,000, N2,000 or N13,000 with a promise that you will make eight times the amount back once you recruit new entrants.


After you have paid in the money, you are asked to invite at least one person to join the system.

There are four levels in Loom Nigeria – Purple, Blue, Orange and Red.

Each time eight people join the loom, the person in the centre (Red) will get the target amount and leave the group.

Netsafe CEO Martin Cocker has warned that the scheme is just a pyramid scheme disguised as something new.

Mr Cocker said the ‘loom’ is one of the first scams that has been seen to spread successfully on social media targeting young people who won’t recognise it as being a pyramid scheme.

‘Any scam targeting people through social media is effective, because as you receive contacts from people you know, you lower your guard,’ Mr Cocker said.

‘It would be pretty easy for a scammer to release a similar kind of programme and release it into social media and see how far it can go.’

Be warned!

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