HYIP Scams
Since their inception about a decade ago, high yield investment programs (HYIPs) have always been linked with scams, specifically the Ponzi and pyramid schemes. Thus, it is perfectly logical if you are hesitant and uneasy about making a venture into HYIPs. However, in spite of the great quantity of scammers around, you cannot simply discount the genuine and legitimate HYIPs, of which there are still plentiful. They may not always last very long, rarely living up to a few years but often flourishing for a few months, but if you cannot take advantage of the potential for high returns simply because of the fear of scammers, then that would be a total shame. Hence, it is of great importance for you to be equipped with enough know-how to discern legitimate HYIPs from scams.
As to be expected, one of the questions most frequently asked is how you can determine if an HYIP is a scam or not. Fortunately, this is perhaps one of the simplest things that you can learn in your investigation as a prospective speculator. Most of the time, you can find out all that you need to know from forums, which are online sites serving as a venue for HYIP investors to meet, discuss and keep abreast of the latest ideas and information with regards to venturing into the world of HYIPs. A common misconstrued belief, however, is that the people who participate in these forums are the best sources of knowledge on spotting scammers. On the contrary, you should take everything posted by these participants with a grain of salt because most of the information posted by them is either misinterpreted or simply wrong. That is why you would rather ask the forum administrator if you want to know how to prevent being scammed on HYIPs.
One basic premise behind asking the forum administrators directly would be the fact that, by doing this, you would get a general impression of how they make transactions and how they deal with investors. Of course, their opinions may not always be truthful and factual, but even so, you would still be able to develop a better feel for HYIPs, especially as you go further along in the industry.
If the particular HYIP you are interested in is a Ponzi scam, the forum administrators will not give you the information that you are asking for or will either indirectly answer your questions or not even answer them at all. Basically, be wary of administrators who will come across as being shady. They may provide lame excuses like being unable to gain access to their files or reports immediately or rendering themselves more susceptible to losing their privacy by answering your questions. Be suspicious if you get shifty responses like these, or if they persistently refuse to answer your queries at all.
On the contrary, administrators who do answer your questions are not ruled out from not being scammers at all. Remember, if mere forum participants can post wrong or misleading information, so can forum administrators who can also be capable of trying to put one over you. Hence, it is crucial that you take extra precautions and investigate all statements and assertions that come your way. Do a background check on every possible angle.
Still another thing that you should be wary of would be HYIPs tendering shockingly high returns on your investment. In general, HYIPs with daily gains of about 1 to 3 percent, or a total of approximately 50 to 100 percent in profit, are legitimate HYIPs. Beware of HYIPs asserting that they can give payouts of 120 to 200 percent at one time, as they are most probably scammers or will not even last very long. Moreover, keep away from HYIPs declaring that they can pay on weekends, because no programs pay on weekends in general.
Last but not least, be conscious to the fact that HYIP scammers are more apt to require a minimal investment or a small membership fee from prospective investors. Furthermore, fraudulent HYIPs are also more likely to offer incentive commissions to current members for referring and recruiting new and potential speculators and investors into their program. This is due to the fact that by doing these, HYIP scams are able to attract more members and investment money into their pool, in the fastest time possible, before closing down.
