What are High Yield Investment Programs or HYIPs?
High Yield Investment Programs or HYIPs regularly claim to make large sums of money from Forex trading. Some promise to pay investors as much as 6% per day. Based on a compounded interest and referrals, they are portrayed as a get rich quick scheme for investors. High Yield Investment Programs or HYIPs are Predominantly Ponzi Schemes The reality is that the overwhelming majority of High Yield Investment Programs or HYIPs are little more than Ponzi schemes. A Ponzi scheme is a fraudulent operation that uses money paid in by new investors to pay the high returns promised to existing investors. Why Ponzi Schemes are Destined to Failure The larger a Ponzi scheme, the more likely it is to be detected by the authorities. All Ponzi schemes are destined to collapse due to the unrealistic returns paid to existing investors. Eventually, there won’t be enough new investors to cover the returns promised to existing investors. The web site will vanish and any money will soon be laundered and passed
