HYIP Scams

You know, one of these days, people are just going to run out of ways to scam others. At least we can hope so. In the meantime, we have a boat load of scams to contend with. One of the biggest on the Internet today is the HYIP, or high yield investment program scam. These are very sneaky and most are very well disguised as legit business opportunities. This article will explain what an HYIP is, why it's a scam, how to recognize one and finally, what to do about it when you run into one. These are illegal. Hopefully, after reading this, you won't fall pray to one of the worst scams the Internet has ever come up with.

Okay first off, let's explain what a high yield investment program is. An HYIP is a program where you invest a certain amount of money. The amount itself doesn't matter, though many of these programs have limits as to how much you can invest at one time. In return for your investment, you are guaranteed a certain return within a certain period of time. The return is usually some ungodly interest rate and the period of time is usually a matter of weeks. In a world where 5% interest would be considered astronomical, when a program like this promises 12% in 12 days, you really have to wonder about the legitimacy of these programs.

Okay, so why are these programs scams? Well, unlike your federal reserve backed bank, these programs get their money strictly from the members who buy into the scam. So if John Doe gets in on January 1, he most likely gets a portion of his money from Jane Smith who joined on January 14. The problem is, because of the compounding of interest, and it goes get very high when people start reinvesting, there is just no way that the company can continue making payments. Eventually, the company has to try to get money from elsewhere. So they go to investors or other avenues, many of which are illegal.

Unfortunately, recognizing these programs isn't as easy as it used to be. Many of them try to disguise themselves behind some bogus product or service, like advertising. But as soon as you see that for every amount of money that you put in you get a percentage return, especially if it's a large return, you can pretty much bet that this is an HYIP scam and you need to stay as far away as possible.

The reason why you should stay away is part of what you need to do when you find these scams. See, the federal government has declared that these programs are illegal, no two ways about it. When they're eventually caught, and they all are, they are shut down. Just read about what happened to 12DailyPro. The worst part is, they are now starting to come after the investors as well, which means you.

So do yourself a favor. If you find one of these programs, don't risk jail, no matter how much they promise you. Not one of these programs ever survived more than a year and most get shut down within a few months.

HYIP programs are not just scams, they're plain illegal.

To YOUR Success