High-yield investment program “HYIP” – Is it a fraud scheme?


Have you have encountered High-Yield Investment Programs while surfing the Internet for investment
opportunities? If so, you are not alone. This type of investment option is lurking around every corner of the World Wide Web. Unfortunately, not all these investment opportunities are created equal. In fact, most of these programs offer zero return. It is crucial to protect each and every investment through in- depth research. Failing to do so will result in you getting caught up in an investment scheme. Once you are victimized by this network of scam artists, you will be facing a financial loss.

Low Risk With High Return

One red flag to be on the lookout for when searching for online investment opportunities is a high return with little to no risk offer. You should know by now, all investments come with some risks. If you are unwilling to accept this fact, it is not recommended to get involved in any investment scheme.

The promise of an HYIP is an incredible return, ranging between 30 and 40 percent. In all actuality, there is little to no investment program that can legally deliver on such promises. 

Newbie Online Investors Are The Target

High-Yield Investment Programs are oftentimes operated by a network of scam artists. If this is your first online investment embarkment, you will need an intelligent approach. Old school investments have risks for all investors. However, these risks are minimal compared to online investments. When fund managers (money managers) manage conventional investments, they are held responsible for their actions in most cases. When fund managers manage online investments, there are no protection guarantees. In fact, there is no guarantee the fund manager is linked to a legitimate investment management company.

Once the word gets out, you are a newbie looking for new online investments, you become a target. You would be surprised by how fast word spreads on the Internet. As mentioned above, High-Yield Investment Programs are oftentimes managed by a network of scam artists. Not a single scam artist, but an entire network of scam artists.

Fraud Or No Fraud

Once you are approached by a fund manager offering a High-Yield Investment Program “prime bank program,” you must decide to invest or walk away. Pay close attention to the investment offer, focusing mainly on the return percentage. Prime bank programs can offer anywhere between 30 and 40 percent or higher returns. Another key feature to be on the lookout for is the risk level. It is not unusual for online fraudsters to make “zero risk” claims for their prime bank programs. Every investment program, including conventional investments, comes with financial risks.

It is recommended to approach every online investment opportunity with caution. Knowing the red flags will put you one step ahead in the game. Unregistered investment programs have significantly more risks than registered alternatives. These programs are more times than not operated by unlicensed individuals or an unlicensed network. 


There are many factors to consider when investing in online investment programs. It is unfortunate when investors, both newbies, and veterans, dive in head first without research.