Do not confuse with hype! High Yield Investment Program is a fraudulent project, similar to a high-return investment fund. It is a type of financial pyramid that pays early investors interest from the deposits of later participants.
The main features of the HYIP-project:
- unreasonable promises of guaranteed high profitability, while the risks are silenced or completely denied;
- lack of details of the organization, full contact details, licenses and official documents (or the provision of fake ones);
- non-transparent scheme of using money, general wording, “secrecy”, excessive complexity or vagueness of explanations of the essence and directions of investments;
- the statement that investment is an exclusive opportunity.