Hyip Programs

HYIP - for financial companies means a fraudulent project, similar to an investment fund with high profitability, a variation of the Ponzi scheme, an investment scam that promises a high return on investment, paying former participants money from the proceeds of new customers.

Typically, HYIP projects are financial pyramids that pay fabulous interest at the expense of new revenues and attract a large number of participants. This is fueling fresh money. After the flow of money ceases or is not enough to cover current liabilities, the HYIP is closed, all payments are terminated.

At the moment, these are mainly online projects that work with electronic currencies. Hip-fund administrators usually create a website offering an "investment program" that promises very high incomes, such as 1% per day (daily compound interest is ((1 + 1/100) ^ {365} -1) * 100 \% = 3678} ((1 + 1/100) {365} -1) * 100 \% = 3678} percent of annual returns), revealing little or no information about basic management, location, or other aspects of how money should be invested (usually because the money is not actually invested) and how the return of investments is proposed, with the exception of the approval tions that will produce different types of trading in the stock markets and other markets such as Forex. Sometimes HYIP funds use emotional appeal, turn to faith and promise to help achieve financial independence.

The US Securities and Exchange Commission said "these fraudulent schemes include the alleged release, trade or use of so-called financial instruments of" major "banks," major "European banks or" major "world banks or other" high-yield investment programs ". Masters of scams tend to mislead investors, suggesting that well-established and financially sound institutions participate in these fictitious programs.

In 2010, the Financial Services Industry Regulation Service warned "HYIPs use a variety of websites and social networks, including YouTube, Twitter and Facebook, to lure investors, create a" hype "and the illusion of social harmony, which is the use of fraudsters The tactics of persuasion are that "if everyone invests in HYIP's, so they should be legal.

Some HYIP funds were established in countries with weak fraud laws to provide immunity against the securities laws of other countries. Often the administrators of HYIP funds place their website for receiving payments on a website with anonymous hosting

A lot of HYIPs can be divided into types: fast, medium-term, long-term.

Regular medium-term HYIP funds promise a profitability of 1-3% per day. Such projects can live for a very long time - about 6-9 months. Everything depends on the goals of the administrator of such a fund and the ability to unleash it.

Fast HYIP live the shortest time, but promises the investor 5-50% per day. This type of investment is more like roulette: lucky / unlucky.

Long term HYIP pays a relatively small percentage, payments are much less frequent, no longer on a daily basis, as in the medium and fast HYIPs, but about once a week.

Often, they try to earn money by investing in the project at a fairly early stage, and then withdrawing funds before the scheme collapses, gaining profit from those who joined later. This in itself is very risky, since being late with an exit from the scheme can lead to the loss of all or a significant portion of the invested money. To reduce this risk, use "tracking sites", which lists the HYIPs and their current status. Dr. Richard Clayton, a computer security expert, says in his studies that there is insufficient evidence that tracking sites can really help investors make more money.