A high-yield investment program (HYIP) is a fraudulent investment scheme that purports to deliver extraordinarily high returns on investment. High-yield investment schemes often advertise yields of more than 100% per year in order to lure in victims. In reality, these high-yield investment programs are Ponzi schemes, and the organizers aim to steal the money invested. In a Ponzi scheme, money from new investors is taken to pay returns to established investors. Money is not invested and no actual underlying returns are earned, new money is just used to pay people who entered the scam earlier than they did.
This scam is also known as the "prime bank scam."
Despite all this, one can also get good profits with HYIP's. You just have to know how!
So here are 5 steps to minimize the risk of loss.
- Check their website, if done badly, stop immediately.
- How long is the Website running - (most of them run a minimum of 2 weeks and a maximum of 3 month)
- Calculate your break even (3-7 days at most of them websites)
- Payout as often as possible to cut the risk of an exit scam!
- Check if they're really paying out!
So with these steps we minimized the chance to loose all, rapidly!