Recently, I seen that any investment using the phrase “high yield, no risk” was always trouble.
So it’s time and energy to shoot up another warning flare for similar-sounding high yield investment programs (HYIPs), which are Ponzi scams.
Now fraud merchants are using social networking to spread the saying on these flim-flams.
In line with the North American Securities Administrators (NASAA), which recently issued an alert on these products:
“The most known characteristics of Hour Money will be the promise of very high returns at little or no risk on the investor as well as the paying of referral fees to current investors for bringing in new investors. In this manner, HYIPs blend aspects of both Ponzi and traditional pyramid schemes into one scheme that can spread faster than ever before.
In a single recent trust hourly, the corporation offered memberships that purported to deliver investors with as much as a 60 % profit in 100 days. In just each year, the company took in more than $10 million from investors. The company trusted Biblical themes along with the promise of high profits to lure unsuspecting investors. All investors’ proceeds were lost.”
Most of these scams promise easy profits with no risk. They may request you to recruit friends and neighbors within an aggressive way. This is the way they work:
The promise of high daily, weekly or monthly returns.
A deal in the company to pay for “referral fees” to investors for attracting additional investors.
The use of social websites to spread the saying and praise this system.
The promoter provides hardly any specifics about who runs the corporation and the way profits are generated.
The promoter might need the investor open an e-currency account to shell out. E-currency accounts usually are not licensed as a money transmitter. (See NASAA’s Virtual Currency Advisory.)
When the pitch you’re hearing may sound like some of the bullet points, above, avoid it and make contact with your state securities regulator.
Be sure to check with your securities regulator before investing. A large number of schemes are unregistered investments. Also, these schemes may involve international operations, which suggests it might be quite difficult, if not impossible, to have your money back.
Usually do not blindly trust a good investment 27dexupky because your friends come to mind or if perhaps it concerns your religious affiliation.
Make inquiries about how the returns will likely be made and who the organization officers are. If these questions can not be answered for your satisfaction, then usually do not invest.
Usually do not trust a purchase even though you get early returns. Keep in mind that is the way they rope you in and acquire anyone to recruit your buddies.
Be suspicious in the “get during early and get out fast” recommendation. Many trusty Hour advertise that a good way to make profits fast is always to invest early then move out early, nevertheless, you never fully realize when the scheme is going to stop.