Bond yields have seen steady gains as they emerge from central bank influence and government policy constraints, increasing relative to their lean yield era counterparts and becoming more cost-competitive than other asset classes.
Slick websites and social media promote High Yield Investment Plans, or HYIPs, which are fraudulent investment schemes promising unsustainable high returns. In general, organizers use payments from new investors to pay previous investors instead of actually investing any of it themselves.
What is a HYIP?
An online HYIP (High Yield Investment Platform) is an investment platform which promises high returns, but in reality is often an unlawful scheme which eventually collapses. Ponzi schemes provide exceptionally high returns with minimal risks to investors; organizers of an HYIP use funds received from new investors to pay existing ones out returns; this money may never even have been invested at all!
HYIPs are generally operated by unlicensed individuals in secret. They use social media platforms such as Facebook, Twitter and YouTube to draw potential investors in. Furthermore, site organizers may conceal themselves so as to avoid being caught by authorities.
Investment in HYIPs involves high levels of risk, but an experienced investor knows how to reduce them by diversifying their portfolio and only investing money they can afford to lose – this will prevent becoming the victim of a scam!
What are the Risks of HYIPs?
Many investors make costly mistakes when investing in high-yield investment programs (HYIPs). Without proper knowledge on how to select and manage their investments effectively and what strategies and techniques should be utilized, many find their funds wasted due to investing in bad HYIPs before trying unsuccessfully to repair them later, ultimately incurring further financial loss in the process.
HYIPs offer unrealistic returns and therefore pose high levels of risk, often offering only short-term investments with potentially temporary gains that might not allow investors to recoup their initial investments.
Reading up on any HYIP can help you determine whether it’s a scam. There are various resources online which can assist with this task, such as monitoring websites, discussion forums and news sites.
How Can I Avoid HYIP Scams?
HYIPs (high yield investment programs) are scams that offer unrealistically high and risky returns on investments. Many HYIPs resemble Ponzi schemes where investors are paid with funds from newcomers rather than from any underlying profits, while also often showing other signs of fraud.
At times, fraudulent investments advertise extremely high annual (or monthly, weekly or daily) investment returns with little explanation as to how these returns may be achieved. Furthermore, social media may be used to create the impression of widespread social approval of their investments.
Many HYIPs also include an alluring “Prime Bank” component to attract investors by creating the illusion that investments are only accessible through select international banking centers. Finally, many HYIPs operate with extreme secrecy and complexity in their transactions – this makes asking questions when considering any investment opportunity all the more essential if you wish to avoid scams associated with HYIPs.
How Can I Get Rid of HYIP Scams?
HYIPs can be costly investments that could leave you bankrupt if you invest. They typically promise unrealistically high returns within short time frames and remain unclear in how their “profits” are generated. Some operate like pyramid schemes where commission is given for recruiting new investors into the fold.
There are several indicators of fraud when it comes to investments, including lack of transparency, fake or misleading testimonials used as bait to get investors on board quickly, pressure to act quickly, and overly positive statements made about an investment opportunity.
Fraudsters are experts at hiding their proceeds from investors, which is why it’s imperative that investors conduct extensive due diligence and consult experienced securities lawyers when investing in high-yield investment programs or prime bank schemes. An experienced securities lawyer may help investors recover losses caused by scams such as HYIP scams or prime bank schemes and also assist with SEC whistleblower cases.
