What Is a High-Yield Investment Program?

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If you have come across ads on the internet or social media sites that are filled with unbelievable rates of return in a short period, then you have definitely seen an advertisement for a high-yield investment program (HYIP).

A high-yield investment program is an unregistered invested program that is run by equally unlicensed people. They are fraudulent programs or investment schemes that claim to offer abnormally high returns on investments.  

An HYIP website can even promise monthly, weekly, or even daily returns that can be up to 30% or 40% or maybe even more. Some of the schemes under this program promise that you will have yields of more than 100% annually, to make sure that they lure you to their scheme. 

These investment programs are Ponzi schemes, and whoever runs them has the sole intention of stealing the money once the investors pour in.

How an HYIP Works

Not to be confused with the rather legal high-yield bond that offers rates that are higher than the investment-grade interest rate, the operators of high-yield investment programs use social media sites such as Twitter, YouTube, or Facebook to entice victims. They paint an illusion of legitimacy of the program to lure investors.  

These programs advertise that the best way to make quick profits is to invest early and get out early. This investment process is the most attractive part about these programs, but the trick is you never know when it will stop. Therefore, to be safe, you should do your homework before you invest in any opportunity.  

To rope investors in, HYIPs are usually very quick to pay the first investors or the first investment you make. This will tempt you to put in more money and even call your friends and family to invest too. 

There are several warning signs that you can look out for to help identify such scams: 

  • They promise or guarantee very high daily, weekly, or monthly returns. 
  • They offer to pay you some fees if you bring in an investor or more
  • They purely use social media to promote what they are selling
  • They give very little or no details about how they make their profits or who runs the company
  • They require every investor to open an electronic currency account. This is because e-currency accounts are not licensed as a way of transmitting money

If you note any of the following, do not be quick to invest with them. To protect yourself and your money, check with security regulatory bodies. Several of these schemes are not registered, and it will be almost impossible to get your money back. Take your time, ask questions about the investment, including where their offices are located. 

Always Take Precaution Before Investing With a High-Yield Investment Program

When you come across a high-yield investment program, you should proceed with extreme caution so that you do not end up losing your money. The weapon that you can use is to ask as many questions as possible. 

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