HYIP abbreviated as– High yield investment program is an investment scheme that promises high returns by paying the previous investors with the money invested by new investors. The investment scheme offers its investors to pay high percentage of returns on a daily, weekly basis returns depending on their current schemes. The investment plan usually follows a chain system for example person ‘A’ gets the returns and profits from the person ‘B’ and person ‘B’ gets the percentage of returns from ‘C’. This type of chain investments do follow with risks. Moreover, currently per the statistical data for the HYIP investments there are many frauds are being included. This raises the question is investing in HYIPs safe?
With this kind of investment if a fraud investment company traps a person, then the expectations of the returns should be 0%. Once the money invested is lost, it is difficult to find the parent source for the investment company to get one’s money back. The schemes offered by many HYIP programs is often attractive as to attract and gain investors they advertise high percentage of returns which may vary anywhere from 50% – 2000% of returns of what one has invested. The numbers are definitely attractive and many tempt to invest their money but the investors need to understand the risks involved with it. It is always advisable to question oneself before taking decisions to invest, whether it is safe or not.
Is this type of investment safe and how to identify risks involved?
Is investing in HYIPs safe? Well, the answer would be no, it is never safe to invest in these type of programs. The HYIP programs do not disclose the complete statistical data of their company and their investors. People with enough knowledge on these types of programs do invest as they know the complete risks involved and they know when to take out their money. However, the people who are ignorant with the risks involved in these types of investments schemes often end up losing their money. One if are planning to invest their money in these schemes then they have to be extremely careful with the company they chose. It is never safe to invest in any HYIP sites, it is better if the investors do a thorough research on these sites and invest on the sites where there are actually many users who have been active with the investment. None of the HYIP investment company admins would deny with 0% profit returns. It is their tactics to gain investors.
Although, they provide statistics on their website it is advisable to not to trust any of the statistical data, as the data might not be current or the data can be fake. Some companies also provide certificates on their websites, again it might be a fake certificate as in the current world with enhanced technology and internet programs any user can generate their own certificate and publish it. One can identify whether the investment company is fake or real up to some extent by verifying the contact details. Usually the fake sites do not want to reveal their identities on the websites and there would not be any physical address provided. Some sites do have the pictures of their CEO’s, again it might be a trick to gain the investors as with the cyber theft one can do photo theft from any of the social networking sites. Many of the sites do hack the social profiles and sometimes may actually call the person and give a brief about their investment plans. There are many people who have end up suffering financial losses by investing in these type fraud schemes.