The Economic and Organised Crime Office (EOCO) has cautioned the public against investing and patronizing the new trend of susu called Loom.
EOCO described it as a scam and warned, that anyone who transacts business with the Loom does so at their own risk.
A statement by EOCO said the LOOM works by getting people to recruit other people to invest money, much like a pyramid selling scheme.
It sits in a circle and everytime a new person is recruited, others are pushed closer to the centre of the circle where they are promised a payout.
However, if people are unable to find investors and move closer to the centre, the last people to invest lose their money.
The statement said there is no actual product coming from the scheme and it is only beneficial to people who get in early because everyone else pays up the chain.
The scheme according to EOCO is targeted at people who are willing to part away with money on its cyberspace.
EOCO said with its mandate to prevent and detect organised crime, it will continue to monitor development with online investment to ensure that people are protected from scammers and fraudsters.
Below is the full statement.
