The Loom Money Nigeria scheme is currently trending on Twitter, however just like MMM, it is also a Ponzi which hinges on peer to peer pyramid scheme.
What is a pyramid scheme?
Typically in a pyramid scheme, you pay to join. The scheme relies on you then recruiting other people to join up and to part with their money as well.
For everyone in the scheme to make a profit, though, there needs to be an endless supply of new members. In reality, the number of people willing to join the scheme, and ultimately the amount of money coming into the scheme, will dry up very quickly. Pyramid schemes are not sustainable and are often illegal. The Loom Money Ponzi started off in UK, took its trade to Australia, before coming down to Nigeria.
Here is how sources say the Loom Money Nigeria Ponzi scheme works;
- Contact the admin of a loom income Whatsapp group and tell him or her about your intention;
- Collect the account details of the person receiving payments. The person should be the group admin and is usually in the middle.
- Pay the required registration or investment fee before someone else does. The earlier you pay, the faster you’re likely to cash out
4. Save the screenshot of the payment
5. Send the screenshot to the group
6. The next step is to refer people to beat others and get paid immediately. Referring is not important, but necessary.
7. When you get to the middle, it’s your turn to receive payment and you automatically become the group admin.