High Yield Investment Program.
A High Yield Investment Program, or HYIP, is a common type of pyramid scheme normally offered via the Internet. HYIPs typically accept deposits as low while promising high returns unexpectedly.
Online HYIP schemes rarely last long term. The vast majority of cases suggest that HYIPs Ponzi schemes, in which new investors money to make a profit to existing investors, which they pay a tendency to move. This approach allows the scam to continue as long as new investors are found and / or old investors leave their money in the system, known as the mixing (because even higher profits are promised).
The introduction of e-currency enabled HYIPs to operate on the internet and cross international borders, and accept a large number of small investments. HYIPs usually accept deposits by either e-currency, like e-gold, e-bullion and INTGold or use specialist third party payment processors like AlertPay, SolidTrustPay, CEPTrust, TriStarMoneyChangers and StormPay. HYIPs typically offer a significant incentive to attract the Commission (eg, 9% of invested funds) for members and find new investors.
Most HYIPs little known and not detailed on the underlying management, location or other aspects of how the money invested (often because money is not invested, actually), and relatively little information (other than claiming they contain different types of trading on various stock exchanges and others) as they really are generating returns on their request. They are sometimes made with some form of emotional appeal, appeals to the faith and the promises they provide to investors in financial freedom.
Maybe it was the largest HYIP scam that exists on the Internet PIPS (People in Profit System or Pure Investors. Investment was launched by Bryan Marsden in early 2004, was (according to the record Wayback Machine http:/ / pureinvestor.com) and more than 20 countries spread PIPS was investigated by Bank Negara Malaysia in 2005, which resulted in Marsden and his wife is a Malaysian court with 97 money laundering, which pay more than RM77 million -. million – (copy of New Straits Times article dated October 11, 2006). Even after these charges were brought Marsden continues many followers / investors continue to support him and believe they would see their money some day. This behavior and denial could be seen and is still HYIP forums to see how a Talk Gold Forum and other
Interest rates
HYIPs generally entitled to an interest of 1% or more per day on invested funds, offer some claim to offer much higher daily rates exceeding 200% per day. supposedly has the highest return on record HYIP offered 1,100% ROI in one day. Claims of astronomical returns without large capital outlay or background information are indicative of a Ponzi-structured HYIP program.
In comparison with a typical 1% per day, characterized by Warren Buffett, one of the most successful investors in the world, around 30% per year during his most successful period for an average of less than 0 , 1% per day. Since the return assumed 1% per day are extremely unlikely to be produced legitimately, all HYIPs are therefore likely to Ponzi schemes, and so most investors in due course lose their money.
HYIP games.
As a result of online forums and websites that track HYIP investors more aware of their nature, another type of “honest” HYIP began to germinate in the early months of 2006. Basically, the HYIP owner calls his program a “ponzi-structured game” where one should “not invest money you can afford to lose,” and he “never a guarantee of profits or refunds. They promise to pay up (example) 95% of deposits, the rest will receive accommodation and other expenses and the owner.
In these games, the first participants (the “Investors”) make a good profit and encouraged others in the program because of the commission, the fact that they already have their headquarters and are related to play a benefit , and contribute, the more people, money, more money can be paid to the participants. In theory, strategies for maximizing the profits of these games are (but of course, because it is a zero sum game, such strategies work by taking advantage of ignorance or errors by others). Some forum users can get a good reputation, trust in others is their word that they could withdraw their profits, encouraging others in the hope that it is possible to invest on them and that they invest, while a profit. Since these games are by definition Ponzi schemes, it is inevitable that the vast majority of investors do not lose at the top of the pyramid of money.
These “games” can be considered as lotteries. However, chances can not be determined because one can not know whether to play in time to make money (that is, whether to follow a sufficient number of new participants). Thus, these activities as opposed to a lottery or other forms of gambling where a player has an equal chance of winning, no matter when a ticket is purchased, or when the chances of the game known.
HYIP monitors.
HYIP monitors, or HYIP listing sites / rating websites that list and / or promote HYIPs for commissions. The monitor loads each HYIP a listing fee is usually then invested in this program, although it is free listings and occasionally monitors are to invest their own money. The monitor, then scored the HYIP as “Paying Agents” or “Not paying / Scam” depending on whether the interest received for the program said. Monitors also allow other HYIP investors to evaluate and comment on programs to factors like the speed of payments and the responsiveness of the HYIP administrator basis. Programs with higher ratings rankings on sites more control, which may be a “paying agent” status and more investors, which coupled to attract as on the monitor.
In most cases, HYIPs only pay monitor sites to see their “paying agent” status, but do not pay other investors. As HYIP monitors not connected with the HYIPs themselves, they are not able to prevent the defrauded investors, they are not conducive to recover funds lost even the traces of fraudsters. Promoting or perpetuating Ponzi schemes is a criminal offense punishable by imprisonment or fines in most countries. That the monitor sites place, saying they “do not promote the programs advertised on their website” exempt from criminal responsibility.
A “payment” prior to beginning production (so that future visitors will see it) and keep it as long as possible to pay monitored newly opened HYIPs list their site quickly and continuously, their interest on time. Added to the fact that many monitors with “right” to invest, and a commission on every deposit from people who have received the visit HYIP via the monitor, they are most likely to benefit if a program runs funds.
HYIP owners can manipulate monitors and forums that are paying a positive comment or individuals using a range of IP addresses or proxy servers in different places, “pay” for the voices seem to come from around the world. This allows the HYIP to get the ladder faster than others, so that investors a false sense of security. Moreover, even if they know that voter fraud in the future, some investors and new HYIPs positively until the HYIP paid more because more people after them in the hope that the program will take more time invest. Future scammers can also build a good reputation on forums for a significant gain even trust our forum members to them.
For example InvestExplorer.com
References.
After registering an account on HYIP – you get “referral link” – the link that allows you to invite others to take to companies of additional percentages
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