Sometimes a company will entertain the occasional get-rich-quick scheme when times have grown hard and it finds that it’s losing money. Some companies turn to fraudulent investment schemes when they find they are not getting the gains that they need or want. One of these is the Ponzi scheme.
A Ponzi scheme is defined as an investment operation where a person or company pays the returns to his investors with the money he gains from new investors rather than using legitimate sources of income. A company or person using the Ponzi scheme will often promise his new investors that he will pay bigger returns than any other company they might invest in. This scheme was named after Charles Ponzi.
One of the modern Ponzi schemes that are spreading throughout the internet right now are high-yield investment programs (also called HYIP). It uses the same principles as the old Ponzi scheme technique, though now those engaged in it employ the use of offshore bases in other countries to cover their tracks. This makes them incredibly difficult to catch and apprehend.
How It Works
A company or person will set up investment websites that offer extremely high returns. Those who click that google search button and goes to these sites, however, will notice that they do not disclose much information about the company behind it, the head office or any other contact details. They also do not state how the money is going to be invested.
Digital payment systems have made it easier for this Ponzi scheme to propagate, as most of these websites are open to digital payments more than the traditional bank accounts.
Diving into HYIP
However, there are some companies or people who are prepared to take the risks of engaging in a high-yield investment program in order to make money. There are several sites online that do outline how to make money off of high-yield investment programs, alongside websites that will allow users to be able to monitor the different investment programs spread across the internet.
One of the pieces of advice that is given to those who want to dive into HYIP is to allot a certain amount of money that is to be invested in it. A person or company should only invest money that they can afford to lose. Another thing they should keep in mind is to protect their accounts with strong passwords and change it often so that those behind the HYIP do not hack into them and steal all their funds.
A person investing in any of these programs should also use HYIP monitors so he can keep track of his investments and switch immediately to another program if one is going bad. A person should also make sure to do his homework before jumping and joining any and every HYIP he can find on the internet. There are some high-yield investment programs that offer higher returns than the rest and these are the ones that will usually cause a person to lose money if he decides to invest in them.
There are several HYIP monitors that a person can visit online which comes in google searches which are done through organic seo and companies like SEOExplode provides a cutting edge in that area, though most do not invest in the HYIP themselves and use the various seo companies to promote their product. Some do it in order to build a relationship with the head of the program. HYIPs that have just started turn to monitors to display them on their site so that they can attract investors. Not all HYIP monitors will accept any program. Usually, they will only get the reputable ones or ones who have been referred by other programs.
Visitors to HYIP monitor sites can filter the programs by the payout amount, age of the program, and other types of preferences. A person should note that the reputable programs will never be marked with “not paid.” If a program marked with that turns up in a HYIP monitor site, then it’s best that a person not bother looking into them. To a person who wants to dive into the HYIP world, then a HYIP monitor will be his most useful tool.