The Economic and Organised Crime Office (EOCO) has warned the general public against any attempt to invest in an incident known as Loom.
The caution was given through a statement issued by EOCO on Friday.
.The statement from EOCO referred to the Loom as a scam, adding that it is a “pyramid scheme disguised as something new”.
“The Economic and Organised Crime Office has for some time now been monitoring the new trend of investment online called LOOM,” the release said.
“It is a scam and the general public is cautioned to desist from investing and patronizing the Loom. Therefore, anyone who transact business with the Loom does it at their own risk”.
EOCO further explained that the Loom targets young people who were willing to invest in such fraudulent schemes in the cyberspace.
The scheme does not trade in any product and is only beneficial for people who get in early, the statement added.
“The loom sits in a circle and every time a new person is recruited others are pushed closer to the centre of the circle where they are promised a payoff. However, if people are unable to find investors and move closer to the center of the circle, the last people to invest lose their money”.