| High Yield Investment Programs or HYIP's are | | | | offers abnormally high short-term returns in order to |
| schemes where a person (the would-be investor) | | | | entice new investors. The high returns that a Ponzi |
| makes what is known as a "spend" (payment) of | | | | scheme advertises (and pays) require an |
| money in quantities ranging from less than $1 to | | | | ever-increasing flow of money from investors in order |
| $1000's in hopes of getting back a high return after a | | | | to keep the scheme going. The system is doomed to |
| certain period of time. Most HYIP's that I have seen | | | | collapse because there are little or no underlying |
| use the gold electronic currency business e-Gold as | | | | earnings from the money received by the promoter." |
| their payment processor of choice. The rate of return | | | | It follows that HYIP's are usually short-lived affairs |
| offered varies depending on the particular HYIP (I have | | | | where the so-called investor is often scammed out of |
| seen sites offering rates as ridiculously high as 3000%) | | | | his/her money. I myself made a total of 15 small |
| and when an e-Gold spend is made it cannot be | | | | spends in 15 different High Yield Investment Programs |
| reversed. This is in accordance with e-Gold's policy | | | | recently just "to see" and I can report that I got paid by |
| and motto which succinctly states: "Get paid, stay | | | | none. Zilch. Zero. |
| paid." | | | | So why do these sites continue popping up all over the |
| The following generic statement can be seen on the | | | | Internet and attracting "investors" when most people |
| home pages of many HYIP's in reference to their | | | | know the majority of these so-called opportunities are |
| program: "Our program is intended for people willing to | | | | really scams? Well, there's always the powerful allure |
| achieve their financial freedom but unable to do so | | | | of the possibility of making money without lifting a |
| because they are not financial experts. xxxxx is a long | | | | finger. That will always attract people. Always. |
| term high yield private loan program backed up by | | | | But the fact remains that if you have some e-Gold |
| Forex market trading and investing in various funds | | | | currency laying around that you don't need, you can |
| and activities. Profits from these investments are used | | | | invest in High Yield Investment Programs and make |
| to enhance our program and increase its stability for | | | | some scam artists always on the prowl for sucker |
| the long term." | | | | money (like mine) feel very satisfied. Very happy. For |
| In fact however, the High Yield Investment Programs | | | | the long term. |
| are Ponzi schemes. Wikipedia, the free encyclopedia | | | | You may reprint or republish this article so long as my |
| says: "A Ponzi scheme (named after Charles Ponzi | | | | link(s) or resource box is included and published as well. |
| who became notorious after using the system) usually | | | | |