Understanding Hyips
Hyips is an acronym that stands for high yield investment programs. It typically is a pyramid or ponzi scheme designed to steal millions of dollars from unsuspecting investors. There are many variations on the theme but basically it involves convincing investors that they can achieve extremely high returns on their investments with little efforts. They promise extremely high interest rates. Some have offered as much as 10% return on investment per day, while legitimate investments can only match that rate on a per year basis.
These Hyip schemes sometimes continue for many years because the promoters use a pyramid Scams type system. They will pay off early investors with funds received by the more recent investors, that way the system “floats” for a longer period of time before crashing down. These schemes have been around for decades and rely on the charm and charisma of the promoters to keep it going. These swindlers are able to sweet talk millions of dollars from investors before they know what is going on. They are able to convince eager investors that these “too good to be true” investments are a good deal. Even though the signs are there that it is a scam, millions of people are taken in by the lure of a big pay off. Even though most of the criminals are eventually caught, it is rare that any of the investors ever recover any of their investment.
Even though the ponzi scheme was brought to this country in the early 1900’s as recently as this decade one of the largest ponzi schemes ever was uncovered. The ironically named Bernard Madoff created one of histories largest ever scams, stealing billions before getting caught.
