What is High Yield Investment Program?

What is High Yield Investment Program? Why there are so many HYIP scams out there? Are they legitimate and safe investment companies? Read here to find out.

What is High Yield Investment Program


Within the first 15-days of April 2016, the following new HYIPs are being born on the market. What exactly is High Yield Investment Program (HYIP)?

  • Wealthy City Limited (wealthycityltd.com)
  • 24Pays (24Pays.com)
  • Cryptobinary (cryptobinary.com)
  • BitMining (bitmining.io)
  • Petroleum Invest (petroleuminvest.biz)
  • HourDeposit (hourdeposit.com)
  • Coiner (coiner.com)
  • Lucrative Venture (lucrativeventure.co)
  • Eternity (eternityinvestments.com)
  • OkBitcoin.biz (okbitcoin.biz)
  • Sociale.space (sociale.space)
  • Depdun Limited (depdun.com)
  • Invest Bitcoin Hourly (investbitcoinhourly.info)

What exactly is High Yield Investment Program?

A high-yield investment program (HYIP) is a type of investment scheme that runs on a Ponzi scheme. It is an investment scam that often offers an unrealistic high return on investment (ROI).

Most of the HYIPs come with the promise of large returns as bait. The so-called investment companies recruit members to sustain the business model.

They take in money from new investors and distribute it to pay off the earlier investors. The scheme is illustrated below.

What is High Yield Investment Program?

When there are no more new “investors” to support the Ponzi model, the entire scheme collapses and the newest members are often the biggest victims.

Most of these Ponzi scams work from anonymous locations which it is extremely difficult for the authorities to trace them. Due to this, there are many HYIPs being born every single day to steal our hard-earned money.


Why are there so many High Yield Investment Programs on the market?

It is fairly easy and cheap to set up aHigh Yield Investment Program. What a fraudster needs to do is to buy a domain name, design a web page, publish it on the internet and create a hype through spreading unrealistic ROIs on social media.

To make it looks real, some of these HYIPs offer online accounts with sophisticated e-currency accounts and e-commerce security, guaranteeing you safe and easy access to your money.

Once all these are done within a week, they bring in a few affiliates and publish fake reviews on their investment scheme to bait the internet users. On top of that, they offer referral programs to encourage you to recruit more members to sustain the “investment” scheme.

It is fairly easy and straightforward to set up a Ponzi scheme and steal money from the innocent people. That is why there are more than one HYIP being launched every day.

A BBC article reports that the researchers estimate that about $6m (£4m) a month passed through the 1600 HYIP schemes they tracked for nine months while gathering data.

It is definitely a “good” way to steal people’s money.


High Yield Investment Program or High Yield Safe Investments?

Whether it is called a high yield investment program, high yield safe investment or high yield dividend investment, They are most probably scams if you see the following characteristics.

  1. High yields that normally come with a fixed ROI per day, per week or per month.
  2. Unknown methodology on how they generate their profit or how they manage the investment fund.
  3. They encourage people to create e-currency accounts. There is currently no federal regulation of e-currency sites, many states require “money transmitters” to register with the state’s banking regulator. An unlicensed e-currency site is a red flag.
  4. Referral program. They need new recruits to sustain the Ponzi scheme. That is commonly found in most HYIPs.

A full post on how to identify those HYIP scams can be found in How to Invest Online without Being Scammed.


Some Tips to Avoid HYIP Scams

You should not invest your money in a program that you do not entirely understand how it works. No matter how good they claim the system is, try to find out the details and the background of the investment company.

The best way to find out if the company is legitimate is to write in and drop them some questions.

I often review Online-Money-Making products on this blog to ensure people are aware of what’s out there on the market. You can check out my review before trying out those programs that overpromise you a lucrative income.


It is Your Turn Now

I appreciate if you could share this post on your social media sites.

Leave your comments too if you have something else to add on. Share your opinions and let us exchange some valuable information.

If you would like me to look into some HYIP products or other affiliate marketing programs. You can also drop your requests and I can do a thorough research for you.

Regards,

Alex

What is High Yield Investment Program?

Alex Y

Alex is the owner of Managing Your Finance. He helps newbies start their own online businesses. Sign up for his 7-Day Free training course and learn how to start making a sustainable income online and quit your 9-to-5 job.

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