Online Investment Scams – They’re Out There!!

a screenshot picture of scam hyip website

There are legitimate ways to invest money online. These days, people are investing in the stock market using online brokerage firms like TD Ameritrade and ETrade. In the age of cryptocurrency, there are those who are investing in Bitcoin, Litecoin, and many others by way of crypto exchanges like Bittrex or Poloniex.

Unfortunately, there are online investment scams out there. The one we’ll be focusing on today are high yield investment funds. These are the ones that promise you high gains and in turn high rewards. Already, you know very well that it’s too good to be true.

However, many people each year get caught up in them and eventually lose a lot of money in the process. Today, we’re going to delve into what these kind of investment scams are and what you’ll need to do to protect yourself. The last thing we want any of our readers to do is become a statistic. With that said, let’s get started.

How Online Investment Scams Got Started:

High yield investment funds are a type of scheme that are known as Ponzi schemes. This has often lead to confusion between them and high-yield bond investments. The high-yield bonds offer bonds that have higher than investment-grade interest rates.

While Ponzi schemes date back as far as the 1900s, this specific type of Ponzi scheme rose to prominence with digital platforms accepting payments online. High yield investment programs of HYIPs often accept forms of payment via electronic payment gateways. That’s because these are easily accessible as opposed to traditional merchant accounts.

Who Is Typically A Target?:

It’s no secret that a lot of people that want to invest want to make big, fast gains as legitimate as possible. These are people who are middle-aged or senior citizens that are either on the verge of retiring or already have. They tend to look for a lucrative, short term ways that supplement their current bank account or retirement income. This of course, opens the doors for them to be vulnerable to investment scams like HYIPs.

How Do These HYIPs Work?:

HYIPs are programs that promise unreasonably high returns and will often use the money from new investors to pay off the older investors. While these scams happen online, there are some HYIPs that will reach out to their potential victims via cold calling. Some of them are even pitched in-person. Of course, these programs will also solicit you on using good old-fashioned email. Either way, their goal is to get you to invest with them on the promise of getting ridiculously high returns.

Here’s what you’ll need to look for in the event if you believe you’re dealing with a HYIP:

They Promise High Returns With Little To No Risk: This is often one of their main selling points. The fact that you can get quick, fast gains without any risk at all may seem alluring. But any smart investor will tell you that if you need big gains, you’ll need to take big risks. Some of these HYIPs will usually promise someone that with enough money invested, they can be able to see returns of 100 percent or more each and every day. The frequency of the returns they promise can also be weekly, monthly, or quarterly.

The Use Of Social Media: We live in the age where a lot of people from all different age groups use social media. Facebook, Twitter, Instagram…it doesn’t matter. Typically, HYIPs will spread the word about their program and pump it up to such an excessive amount. Of course, they will hammer the old “big gains, no risk” talking point to death because to them, they think “how can anyone say no to more money? They’re idiots if they say no.” It’s unclear whether social media companies are implementing strategies on cracking down on these HYIPs, but regardless you should steer clear from them anyway.

Lack Of Information: Typically, the people who promote the HYIP will have little information about who runs the program and how the profits are funded. Either they know a lot and they’re feigning ignorance or simply just don’t know. If I had to bet on the farm, it would be on the former.

E-Currency: As mentioned, we live in the age of cryptocurrency where Bitcoin, Litecoin, and Ethereum dominate the conversation. However, they should not be confused with the E-Currency that these HYIPs claim they make themselves. An HYIP will often require new investors to open up new accounts in order to invest. These types of accounts are often unlicensed as money transmitters.

How To Protect Yourself From HYIP Scams:

There are certain measures that you should take in order to protect yourself from these types of scams. They are as follows:

  • Consult with securities regulators before you invest. In the United States, see if they are actually made aware of by the Security and Exchanges Commission (SEC). Most of these schemes are unregistered and are operated internationally. Since they are likely based outside of the United States, any money you lose may be impossible to get back.


  • Just because your friends or family are involved (hopefully, they’re not) doesn’t mean it’s legit. Just because it aligns well with your personal beliefs such as politics and religion, doesn’t mean it’s legit as well. Do not place your full faith and trust too quickly in these types of programs.


  • Always ask questions. Ask questions about how the profits are generated and who some of the company officials are. If you don’t get an answer, don’t invest.


  • Never trust an investment because you receive early returns. This is just another tactic for them to suck you in and get you to recruit your friends into joining as well.


  • Take the “get in early, get out fast” recommendation with a grain of salt. Many HYIPs claims that one of the best ways to gain quick profits is by getting in early and getting out fast. You never know when exactly when the scheme will stop.

a screenshot picture of a hyip website

My Final Conclusion:

A lot of us want to make a good amount of money online by any legitimate means. At the same time, there’s a lot of us who want a good amount to enjoy our retirement with. No matter what your financial goals, you should never take part in a program that promises big, fast gains with little to no risk. Should you run into any of these, please report them to your local government authorities (Ex: In the United States, contact the SEC).

Do you have any experience with any online investment scams? Do you have any questions about my investment scam review? If so, please leave your comments or questions below, and I will be more than happy to get back to you. Thanks again for checking out my post, and good luck with your success online..

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2 thoughts on “Online Investment Scams – They’re Out There!!

  1. Most recovery companies will take your money again. I personally think they are the same set of people that run all of them, seems like an unending cycle and its too sad. The most crazy thing about the whole internet thing is how you can clone a website to make it look like the real one, I discovered so many people fell into this kind of scams. The only recovery company I know that works is Benedictine@consultant.Com, I have been to their physical address to meet them before and the good thing about them is that they will let you know if they can handle your case or not. So they will not just take your cb/c money when they already know they wont help you out.

    1. Thanks for this valuable information Anna! Hopefully others will find this very useful. If they don’t, please post your results here so others will know as well. Thank you again for sharing this valuable information.

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