The High Yield Investment Programs or HYIPs are one of the biggest and most succesful scams around the Net.

The plot is simple. A “professional” and good looking website offers the opportunity of making outstanding investments. They usually claim a 10% weekly profit, or even 100% daily (I have seen it).

What they forget to mention is that the 100% profit is not for you, but for them. Once you give them the money, you can say good bye to it.

Invest in HYIPs?

It is one of the most lucrative short term activities. These companies only need a lot of people wanting to make money. And, there are millions of people crazy for money everywhere.

We can say that this is a very good business, or preferably, a fantastic SCAM.

As a general rule, any offer whether in Internet or not, that promises more than 20% annual return “guaranteed” should be considered suspicious.

It is perfectly possible that there are stock market, forex or futures experts that can deliver a 20% annual return on average. But, those returns are never guaranteed.

We should be happy if we could make a 10% annual return on our savings. In that sense, some people who put money in HYIPs hoping to get rich by making a “5% daily profit”, deserve to lose it for being greedy.

Imagine we have a great idea about some business and try to put it in practice. We should look for external financing.

Do you imagine giving a 1% daily interest to anyone that gave us some money?

A 1% interest is 100% of the principal in 100 days.

Who is borrowing money like that?

Well, obviously someone who is not going to pay back the principal. Maybe some interest payments in the beginning, but nothing else.

Their business is not investing or whatever, but collecting the money from you.

HYIP ponzi scheme

How do HYIPs find so many customers? First, there a lot of greedy people hoping to get rich quick.

These companies design a very good marketing campaign with phony websites, referrals, affiliates and start “paying” interests to their first customers. From then on, people spread the word and the company gets a lot of customers.

That is when the big and easy money comes in. That money will not be seen by their original owners never again in most cases.

I is usually easy to recognize these businesses when you see things like: “invest and make a 1% daily return”. However, when the promise is a 50% annual return, you doubt because it does not seem too much. Yet, not many people can make a 50% average return in ten or twenty years.

The guys who run these businesses hire people to get fake reviews and talk about how beautiful life is, after they purchased the investment plan.

HYIP ponzi

I have even found webs promoting HYIPs and sorts of HYPSs portfolios. It is one of the most ridiculous things I have ever seen on the Web.

Nobody, I repeat, nobody makes a living investing in HYIPs. The only ones, who make a living out of them, are the promoters and creators.

Remember that anything too good to be true is probably not true.

If we have doubts about where to put our money, it is best to open a simple deposit in a bank, or spend it on holidays. But, please, do not send money to some “unique and last opportunities” of investments too good to be true.


Thanks for reading and sharing.