Prevent Getting Scammed by HYIP

Because HYIPs have become associated with scams, particularly the Ponzi and pyramid schemes, it is understandable if you are apprehensive about investing in an HYIP. Despite the abundance of these scammers, however, there are still a number of legitimate HYIPs around, albeit short-lived ones, often lasting from a few months to at most a few years. It would thus be a shame if you were not able to generate high returns by investing in these particular HYIPs simply because you were not equipped with enough know-how to single out these scammers. Therefore, it would help if you knew how to prevent getting victimized by fraudulent programs.

One of the most frequently asked questions is how you can find out if a program is a Ponzi scheme or not. This is actually one of the easiest things that you as a prospective investor can find out. The answer often lies in forums, which in this particular case is a venue where investors such as yourself can share and exchange ideas and information regarding HYIPs and investments. However, a common misconception is that the best resources for information regarding spotting scammers are the people who participate in these said forums. This is a big no-no particularly because most of the information posted by a lot of members is either misconstrued or plain wrong. In truth, it is the forum administrator who is the best person to ask concerning HYIP scams.

Essentially, it would be better for you to post your queries to the forum administrators, because this would give you a general feel of how they deal with people and how they respond to questions. Although the opinions of administrators may not always be honest, by getting it from the horse’s mouth, you’ll still develop a better understanding of the industry the longer you deal with HYIPs.

You should also not be afraid to ask questions or to clarify certain information. You can ask your administrators queries such as “How does your program generate income?”, “Do you have documents to back your claims up regarding how your program makes money?”, “If you cannot produce these said documents, why not?”, “Can you show evidence proving that you trade in FOREX, the stock market and the like as you pointed out in your website?”

Often if you’re dealing with a Ponzi scam, the administrators will not answer your queries or supply information you are asking for. They may give lame excuses such as not being able to access their reports at the time or that they run the risk of losing their privacy by answering your questions. Sometimes they may not even answer you at all. This type of shady response should make you wary that you may be dealing with scammers.

However, it does not mean that administrators who do answer your queries are not scammers at all. As mentioned earlier, people on forums may post the wrong information, and this doesn’t discount the fact that a lot of administrators will also try to fool you and put one over you. It is therefore important that you go the extra mile and research on all claims pointed out to you. This is where the importance of diligence and practice comes about. Without doing a background check on everything, it will really be difficult to separate the truth from the fiddle.

Also, you should beware of programs offering astounding gains on your investment. You will want to look for HYIPs which pay out about 1 to 3 percent daily, or a total of about 50 to 100 percent in profit. Stay away from HYIPs that declare that they can give you returns of 120 to 200 percent all at once, either because the are scams or they will not last very long. Also, be wary of those which claim to pay on weekends, because no such investment pays on weekends.

Lastly, know that fraudulent HYIPs are more likely to ask for minimal investment and membership fees, as well as incentive commissions for referring or recruiting new investors to join in. The idea behind this is that scam HYIPs want to draw in as many members, and investment money, in the shortest possible time before closing down.