How to Invest Online Without Being Scammed
Here’s the truth, most high yield investment programs (HYIP) on the internet are scams. They overpromise unrealistic high return (as high as 100% per day) with their exclusive investment schemes.
It is essential to learn how to spot these scam artists and keep yourself aways from them.
Spotting High Yield Investment Program Scams
We often see HYIP claims guaranteed above-market return with minimal risk. When you see this, you should be vigilant and be wise with your choice. There are a few signs that tell whether these HYIPs are actually frauds.
1. High Yields
You often see these programs provides daily rates of return and cryptic with short and long term payout options. Some of them promised more than 50 percent return daily. Some of them offer 7, 14, 50 and 60-day payout plan that the return can go up ridiculously high.
Beware of those claims. Even a large company stocks, the average return is often less than 10% per year.
An example is given below where Amazing 5 claims you could get a total return of 112% in 10 days.
2. Unknown Methodology
You won’t be able to find clear information on how they allocate your investment. These HYIPs often hide this information from their investors. Not only that, these companies cloak themselves in secrecy regarding the fund managers and how they manage the money.
Don’t trust the hidden secret in the HYIP program
In these HYIP programs, the fraudsters usually claim knowledge of some kind of secret formula which allows them to register very high profits on a consistent basis.
Those secret formulas are nothing but just a Ponzi scheme.
3. They use E-Currency Sites
It is common to find that most HYIPs require their investors to register and open an “e-currency” account. E-currency has been very popular and widely used by fraudsters. They demand payment in e-currency because, unlike with checks or credits cards, the charges clear instantly and cannot be canceled.
Another reason is there is currently no federal regulation of e-currency sites, many states require “money transmitters” to register with the state’s banking regulator. An unlicensed e-currency site is a red flag.
I have seen a lot of complaints about these e-currency sites and one should question if these HYIPs are legitimate.
4. Referral Program to Recruit New “Investors”
Most of these companies offer an additional opportunity to earn extra money by recruiting new investors. This is a typical scam that runs Ponzi scheme. This scheme requires you to bring in new investors with new money injection into their system.
This fresh money is then used to pay off the earlier “investors”. The whole structure collapses when the cash outflow exceeds the cash inflow. That also means the entire system doesn’t work when there is no longer new “investors”.
Often the earliest victims of the HYIP are those who are the luckiest, but even that is unreal. Those at the top of the pyramid will usually earn the highest amounts due to their seniority in the structure. Those who are the latest usually lose every penny that they deposit, as the scheme collapses and the managers disappear among shades and winds along with client money
Some Tips to Avoid Scams
First of all, do not sign up and pay any of your hard-earned money on a product that you do not understand. Do not ever believe the promises that sound too good to be true.
We are in the era of over-development of communications, it is easy to look up for information about any products on the internet. However, you have to be wise enough to make your judgment as there are fake reviews too that try to lure for your money.
There are way too many fraudsters create hypes about their products by spreading fake testimonials and claims on the internet.
In today’s life, there are more than three billion internet users in the world. With one mouse click, anyone can be lured into these HYIP programs and lose all your money.
There are many scams in the world of technology today. It is essential to learn how to identify them and keep yourself away from them.
I hope this checklist helps.
It is Your Turn Now
I appreciate if you could share this post on your social media sites. It is important to spread this information to people around you to avoid them from falling into these HYIP traps.
Leave your comments too if you have something else to add on. Share your opinions and let us exchange some valuable information.
Dislaimer: This is not investing advice, this website is for educational purposes only.