The Hype of High Yield Investment Programs

In the past few years, internet thieves and scam artists launched what they called high yield investment programs or HYIP. These high yield investment opportunities promised large returns in a short period of time. But the high yield investment programs were not run by reputable financial fund managers or advisors. They were designed to take money from unsuspecting investors and give them nothing in return.

While some of these unscrupulous thieves have since been caught, some are still in business. So, it is wise for you to understand the concept and avoid these investments, choosing instead to go with reputable investment funds and, if you invest wisely and with appropriate risk, you may still achieve high yield.  

The typical high yield investment program scam involves an email invitation to visit a web site. Here you will find information about the promised returns and be tempted to invest your money. You will find nothing about the history or experience of the fund manager or the client references that might lead you to determine legitimacy. That should be the first tip that something is wrong. These sites promise to trade in exotic markets with foreign banks, thereby achieving tempting returns.

The idea is to provide money to be invested into high-rolling, large investment accounts and thereby take advantage of investment in high yield stocks you could not otherwise afford. The extended investment community pays off the interest and pays back the initial investor but like many other pyramid and Ponzi schemes. A Ponzi scheme works by promising returns to investors based on the money invested by those who will invest later. In other words, you don’t make anything unless others follow your lead and invest in the same scheme and even then you probably won’t get what you are promised. You might even be asked to actively solicit investment from your friends and family!  

While the advent of electronic investment allowed these scams to thrive, they are less prominent today but they still exist. In fact the damage done to the term High Yield Investment was so profound that reputable investment firms and agents stopped using the term for fear of being confused with scam artists or, worse, legitimizing the term and allowing the thieves to attract more victims.  

If you are really interested in high yield investment, you should first find a reputable, historically proven investment fund and financial advisor. Let them tell you what is realistic and follow the traditional market. Don’t be too desperate to make a fortune or your desperation may lead you to thieves who will leave you with nothing!