Loom get-rich-quick scheme probed

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Financial Services Commission (FSC) says an investigation has started into the operations of the latest get rich quick scheme to emerge on the market. Loom, which is also advertised as the Birthday Club and a Blessing Plan, uses mainly Instagram and Facebook or direct messages through WhatsApp to attract customers, promising up to 300 per cent return on each investment.

People are invited to invest as little as $5,000 and to invite at least two more persons to join. The operators then promise that after one week of the initial investment, persons will see returns of up to $20,000.

David Geddes, Communication and International Relations Manager at the FSC, says the agency's Investigations and Enforcement Division is trying to locate the operators of the illegal scheme so it can issue a cease and desist order. Geddes pointed out that the operators of Loom would fail at any attempt to become licensed because of their unsustainable business model.