One important aspect of making money online is knowing how to avoid getting scammed when you first launch yourself into the wonderful online money making world. Trust me there are a lot of sites out there trying to take your money and they often have creative ways of appealing to you. This is the first in a series of articles exploring a variety of online scams. Make sure you subscribe to Paid Survey Success so you won’t miss the rest of the articles.
What is a really easy way to get people to send you money? Appeal to their greed of course.
Make up some story about how wonderful you are at investing in something and tell them you can easily double their money and you’ll have lots of people salivating and lining up to send you their money.
Does it have to be true? Of course not, you just have to get people to believe that it’s true. And what easier way to do that than to bypass their logic and get them to think with their greed.
Promise them whatever they want to hear. Tell them they can get rich without working at all, without doing anything but sending you money and waiting for the profits to roll in. Make them believe that they can make money even when they are sleeping.
Do people really do that? You bet they do if all they want is to take your money. And people all over the world fall for it every day.
What is a HYIP?
HYIP stands for High Yield Investment Program. They are the sites out there that promise you a 1% daily return on your money or some such nonsense. Most of them claim that they are brilliant with stocks or futures or foreign currencies and all you need to do is send your money to them and they will pay you back at the rate of 1% a day or double your money in 3 months or something along those lines.
HYIP’s are not investments and while they may be high yield for some people for a short time eventually they become zero yield when your money disappears.
There is no way to know how much money is taken from people every day through these types of programs, but judging by the number of them and how quickly they spring up and go away I wouldn’t be surprised no matter how high the number is.
The reason they spring up so quickly is that you can actually purchase programs that run a HYIP on your website. Or you can simply buy a website that’s already been set up as a HYIP and is ready to start taking money. Programmers can put these together from templates very quickly.
Once the website is up and running it is so simple to put any kind of information on there you wish. If you’re planning on stealing people’s money do you care if it’s the truth? Of course you don’t, you’re just like any other con man and you’re gonna tell your victim whatever you need to so you can part them from their money.
So you tell the world that you are one of the top stock brokers or commodity brokers or FOREX traders and you have a “NEW” system that will put money in their pockets even while they sleep. Will people believe you? Yep, some will because now you have the attention of their greed.
Of course you want it to look like your program is already successful because that will make your lies even more believable. So, when you set up the website you also put counters on there with large numbers to show how many people are already making money with you. Yes it’s another lie, but what do you care you’re getting rich.
Now you have even more people buying into the program, but you can make it look even better. What if you had testimonials from ‘real’ people who made money with your program. Easy! Set up a forum and pay some people to put a few dozen posts in there about how wonderful your HYIP is and how rich they’re becoming. The costs for the forum posts is minimal compared to the amount of money that will soon be flowing your way.
Now with everything in place you start advertising your new HYIP. In the beginning everything is going to look great to your “investors” because you’ll pay out to everyone on time. And you’ll set up an affiliate program as well for others to promote your great HYIP. And you’ll pay them on time as well. If you do this then you’ll be able to get hundreds of new “investors” in just a short period of time.
Your “investors” will be ecstatic as they receive their payments and as greed takes over they will “re-invest”, send every penny right back to you to make as much money as possible. Eventually the owners of the HYIP will have several hundred thousand dollars and that’s when they pull the plug and POOF!…they disappear.
There are thousands of documented cases of HYIP fraud. Some people have even lost their life’s savings this way, please don’t be one of those people.
How To Avoid The Scam
If you’ve come across a HYIP and you think you want to invest please STOP! Check out this site where they have over 3300 scam HYIP’s listed.
Among those who track these things it is estimated that 99-100% of all HYIP’s are scams. I think the 1% difference are just those that haven’t been discovered to be scams yet.
Is there anyway that you can tell the difference between a real HYIP and a fake one? No, there is no way to tell the difference. It is impossible.
Always remember with any “business offer” you find on the internet that money CANNOT be created from nothing. The money needs to come from somewhere and usually that somewhere is from other unsuspecting people like yourself.
Any time a website promises to pay you more than you pay in without any effort on your part you should immediately RUN from that site. Never send money to a stranger who promises amazing returns on your money with no effort on your part.
Think about it, if this person is such a wizard at creating money from the stock market or FOREX or commodities or whatever why would they need your $10 or $20? They wouldn’t! Would you trust someone who came up to you on the street and told you they were a money making genius and if you gave them a $20 bill right now they would double it for you in the next 3 days? Would you give them the $20? Then why do you expect people on the internet to be different? They’re not, in fact the cloak of anonymity makes them even more dangerous.
If the most brilliant investors of our time such as Warren Buffet and Peter Lynch can’t double their money every month what makes you think that a complete stranger from the internet can do it for you?
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Thanks for a great article. All Hyip are basically ponzi schemes who manage to survive only if more people join, which ultimately sooner or later will be there downfall. This is because they pay the interest of the early joiners by using the capital of the new members. There’s no investment and no returns, and your money is used to pay others until it collapse.
Unfortunately a lot of these Hyip’s pretend to invest in the Forex market which is totally false. Now money can be made in the Forex Market, just like in any other market. However, you must learn and practice first. There are a number of individual trying to also sell you course and methods which aren’t worth it, so due diligence is required. But with the right information and knowledge, trading Forex can be really rewarding.
But as the author points out rather well, use your common sense and stay away of offers which seems too good to be true.