Nigerians Fall For Loom – Another Ponzi Scheme – Despite Losing Billions To MMM

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Despite losing lots of money to MMM, Nigerians have now fallen for yet another ponzi scheme called Loom. 

Barely a few years after Mavrodi Mundial Moneybox (MMM), a popular ponzi scheme, crashed in Nigeria, “Loom”, a similar money-making scheme, is fast catching up among Nigerians.

“Loom Money Nigeria” is a peer-to-peer pyramid scheme that follows the same pattern as the collapsed MMM.

Organisers of the ponzi scheme have asked people to invest as low as N1000 or N13,000 and get as much as eight times the value of the investment before 48 hours.

Unlike MMM, where there is a website and its founder (late Sergey Mavrodi) is well known, the promoters of Loom are elusive while the pyramid scheme operates via closed groups mainly on Facebook and Whatsapp.

Daily Mail had reported in April that ponzi schemes resurfaced online all over the world, with different names such as “Loom circle”, “fractal mandala” and “blessing Loom”.

ABC News reported that Loom was first reported in the UK but is now circulating on social media platforms in Australia.

The pyramid scheme is currently making wave in Nigeria with individuals creating their own WhatsApp groups such as “Preye Loom”, “Catherine Loom”, among others.

It is believed that once users are invited to join the WhatsApp group chats, they are asked to invest N1,000, N2,000 or N13,000 with a promise that they will make eight times the amount once the participants recruit new entrants.

After payments, participants are thereafter told 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 group chat, the person in the centre — usually on the red spot — will get the target amount and leave the group.

Over three million Nigerians reportedly lost N18 billion to the MMM after it crashed in 2017. This was after the Securities and Exchange Commission (SEC) and the Central bank of Nigeria (CBN) warned them against participating in the scheme which they described as a “Ponzi” scheme.

The hardship in the country and the get-rich-quick mentality of Nigerians makes it easy for us to fall prey to these ponzi schemes time and time again.

Do you know anyone that has cashed out on Loom, share your experiences below.

167 COMMENTS

      • There are different categories of networking business though, the one am into has brought me much returns just after 5 months of my initial investment. A networking business without products is fake and a scam in disguise… Ask me more if you need to be educated!

  1. I don’t have quick money mentality, so I don’t have any experience of being a victim. Even if I have a little of the mentality I pray that God will delete it from my being. Quick money mentality is against God’s way of making money or earning a living.

  2. Nigerians have a quick forgotten brain or can I say stupid mentality, after loosing to mmm the organizer just turn other way round to form loom yet their eyes is not clear, let them go for doom not loom.

  3. Nigerians have a quick forgotten brain or can I say stupid mentality, after loosing to mmm the organizer just turn other way round to form loom yet their eyes is not clear, let them go for doom not

  4. Don’t mind Nigerians. I was actually amazed at the rate at which people were falling for this loom. It’s true some people got lucky but it was meant to crash sooner or later.. It’s simple reasoning. 1k to get 8k.. Like seriously? Too good to be true.. Not all that glitters is gold

  5. Comment: Every thing is all about risk. I have not heard anything loom before. Even cashalart is a risk because we were told that one can withdraw without referral but now they said without referral one will have up to #15000 before we can withdraw.

  6. It’s really unfortunate that our youths fall for cheap things that when it crashes people will start committing murder and things would start to fall apart mentally… The best business to partner with in this 21st century is more or less a system that can pay you for life, if you’re interested in learning these 21st century systems (for free), kindly chat me up on 08030530978

  7. There are different categories of networking business though, the one am into has brought me much returns just after 5 months of my initial investment. A networking business without products is fake and a scam in disguise… Ask me more if you need to be educated!