Remember Me
forgot your password?

High Yield Investment Program Scams

As you read the next email in your box about how the widow of the former leader of Mubai needs your help getting her deceased hubby's millions out of the corrupt grasp of that nation's banks, rest assured, internet crime has already moved well past those clumsy attempts to use your money for the personal gain of some anonymous internet scammer.

One of the most prevalent scams today is the HYIP, or High Yield Investment Program. These programs are nothing new. More than one hundred years ago, businessmen requiring quick capital began enticing investors with promises of a quick and profitable return on their money. In some instances, these "investments" were more like contributions, as many, many investors lost their shirts when their finance dreams went belly-up. In essence, HYIPs have always been risky business.

Once a real investment opportunity, HYIPs realized an entirely new purpose when Charles Ponzi entered the picture in the early 1900's. Ponzi needed money for his newly conceptualized business and decided to entice investors by promising a fifty percent return on their money in less than two months. Not content to stop there, Ponzi also promised investors that they would double their money in three months! However, since Ponzi was using the money from subsequent investors to pay off initial investors, it was only a matter of time before his scheme came tumbling down. The problem with these types of schemes is that they don't depend on any real business profits, just the continued influx of cash from new investors.

The opportunities presented by this type of scheme have been too good for internet scammers to ignore. Now, it's not your son-in-law asking for startup capital for his dream business, but rather some anonymous criminal looking to part you from your money and run.

The ongoing course of HYIP scams really makes it difficult for the little guy to try to get a piece of the big guy's pie. Thus, the little guy has to really do his/her research in all HYIP programs in order to make sure he/she does not get left with empty pockets. All HYIP programs are not bad, but the good ones are few and far between. The last thing anyone should go through is to wonder whether or not has he/she seen their last dollar. Therefore, keep your eyes and ears open and your bank account closed because it is not too funny living with no money.

Jack Goode

Jack A. Goode, II has a keen interest in the issues involving HYIP scams. For another thought provoking blog, please click here

Rate this Article: 0 / 5 stars - 0 vote(s)
Print Email Re-Publish

Add new Comment



Captcha

  • Latest Investing Articles
  • More from Jack Goode

Quick Tips on Finding Hard Money Lenders

By: James Gossette | 16/11/2009
For a real estate investor, one of his important tasks aside from finding good investment properties is to find a good source of funds.

Worst Mistakes When Rehabbing Houses

By: James Gossette | 16/11/2009
Some of us get too excited with the concept of earning easy money through rehabbing houses.

Rehabbing Houses The Right Way

By: James Gossette | 16/11/2009
Rehabbing houses is taking the real estate world by storm. Fixing and flipping houses is popular nowadays as a source of extra money.

Is it Wise to Hire Contractors when Rehabbing Houses?

By: James Gossette | 16/11/2009
If you're looking for a breath of fresh air in your daily life, you should try rehabbing houses for profit. The business of fixing and flipping properties is relatively easy once you get the hang of it.

Fix and Flip These Homes

By: James Gossette | 16/11/2009
Rehabbing houses has become a reprieve for those who are looking for an additional source of income amid the tough times.

Discovering Hard Money Loans

By: James Gossette | 16/11/2009
Being a real estate investor, one of the most important things you should do is to find a good source of funds.

Secret of Setting Exits in Trading

By: Taro Hideyoshi | 15/11/2009
The secret of exiting a trade for professionals is to plan their exits. Before entering a trade, professionals set their specific target and stop price levels. While beginners keep searching for entries.

AN ANALAYSIS OF INNOVATIVE INSTRUMENTS OF RAISING FINANCE BY LISTED INDIAN COMPANY

By: Nidheesh K B | 15/11/2009
The innovative instruments have the potential to help Indian companies to overcome the severe financing constraints they have been experiencing over a long period of time. Companies are doing every thing to tap available financial resources through the use of old and innovative instruments and the process will continue indefinetly.Companies in their pursuit of reducing the cost of capital, put a premium on such instrument which will help in achieving such an objectives.

Tiger Woods: As Socially Responsible As He Wants To Be

By: Jack Goode | 08/03/2008 | Golf
Tiger Woods' social responsibility to take a stand on racial issues.

Working As A Black Man In Corporate America

By: Jack Goode | 04/02/2008 | Careers
The black man who is successful in corporate America is considered a "sell out" through some black peoples' eyes. But is he really?

Road Rage - Is It A Disease?

By: Jack Goode | 23/01/2008 | Cars
Bumper car highways are surging across America.

Submit Your Articles Free: Signup
Article Categories




Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Copyright © 2005-2008 Free Articles by ArticlesBase.com, All rights reserved. (0.30, 8, w2)