It is difficult to track central characters behind Loom – SEC

The Head of Policy and Research at the Security and Exchange Commission (SEC), Emmanuel Ashong-Katai has said it will be difficult to clamp down the people behind the new money-making scheme, Loom.

The scheme asks participants to pay a sum of money up front with the promise of making a return of up to even eight times that amount.

The pyramid scheme has been appearing in newsfeeds online and circulating on social media.

According to him, Emmanuel Ashong-Katai, the best chance they have on catching any culprit in charge of the loom is collaborating with foreign regulators.

Speaking on Eyewitness News he said, SEC has signed a Memorandum of Understanding (MoU) outside the country to be able to track down the culprit behind loom money making scheme

“It can be done by one institution alone, we need to collaborate, we have to link up with our foreign regulators to see if we can track them down. SEC has signed a Memorandum of Understanding(MoU) with other regulators outside so we can track exactly where they are operating from. If it is the UK then we have to go to the Finance Conduct Authority in the UK to track them down, ” he said.

He also mentioned that it very hard to track them down as the funds are moved quickly from one place to the other.

The Economic and Organised Crime Office (EOCO) has warned that the Loom money making scheme targetted at young people is a scam.

“It is a scam and the general public is cautioned to desist from investing and patronizing the Loom,” the office warned in a statement.

EOCO also warned that “anyone who transacts business with the Loom does it at their own risk.”

The office assured that it will keep an eye on how the get-rich-quick scheme unravels.