Ponzi Scheme - The term Ponzi is derived from the actions of a man names Charles K Ponzi. It is any program or claimed investment opportunity which relies on new investments to pay off the older ones. Those whom invest first are thus paid their returns from those who invest after them, leaving the last investors the ones who lose out. Many HYIPs who claim to be trading, investing, etc are really only running a ponzi scheme. Some have also compared the US Social Security system to a ponzi scheme.

WARNING SIGNS/ SCAMMERS TACTICS

If you are asking which HYIP is not a scam, our answer is simple, we don't know. Scammers dress up to look like real investors while the real investors are always hiding and not dressed up. All we know is that no program last forever. However, here are some warning signs/guidelines for you to identify that scammer.

Pay the small fish and the big fish will come
The HYIP has being paying daily for few months without fail. Their membership growth rate is healthy.

Suddenly they announced a new plan, which is more much more attractive than the current plans. This new plan is usually on a compounding basis whereby you can only withdraw only after a month or so. The new plan also requires you to invest a higher spend than the other plans.

People will fall for it because the HYIP had gain much public trust after months of consistent payout.

Example: Global-E-Bank

Voting Madness
The HYIP pays non-investors to vote on monitoring sites. These non-investors keep voting on varies monitoring site and in the end they get more than the real investors.

This is a sign of a ponzi scheme. That HYIP need more new money to pay the old investors. A non-investor voting : “I got paid! Super! Best HYIP!” is the joke of the year. They are paid to be a liar. These liars are no different from scammers and to us, they are in the same barrack as those scammers in the jail.

Also watch out for sudden increase in good votes. Yesterday there were 10 good votes and today there are 100? Someone is behind this and you should know who he is……the SCAMMER!

Example: ImpexInvestments

FAQ/Plan Structure Rip Off
Many HYIP are so lazy to do their own FAQ and even their pay structure that they copy others. If they are so lazy to do their own, they will also be lazy to pay you!

Example: oneinvest.co.uk is identical to syninvest's FAQ and xgoldx is identical to C-Investment's pay structure.

Programs offering High ridiculous returns
This is so easy to identify. “45% daily!” Ya right, my ass.

Example: siriusinvest

Re-Investors
Some HYIP that claim to be forex traders are just re-investor. They reinvest your money into higher paying HYIPs.

During the DOS attacks, some big players went down. How many smaller players went down with them? The ratio is as bad as 1:10. When one top paying program shutdown, 10 will follow.

So be on a look out for top paying programs that are having trouble.

Dishonest Blogs/Monitoring Sites
These blogs/monitoring sites claim to be honest investors. They will list the biggest and most well known paying programs and give professional reviews. After scrolling through the listings, you discover a stranger inside the top list! A program you never heard of before. But the site claim that it is best program and they have already invested a huge sum of money in it.

Obviously, the monitoring site has some “relationship” with that HYIP or vice versa.

Fake Documents
Someone discovered the documents posted by the HYIP as fake. Why a need to display fake documents?? Obviously this is a ponzi!!

Example: ImpexInvestment

HYIPs claiming to be a division of a group
It's so easy to check out on these idiots. Just call the main group. Usually, the main group will claim that no such division exists!

Example: Mineral Investments

THE 3% CURSE
Over the years, theres a payout trend in the HYIP world:

1% daily - usually goes with 365 days/life
2% daily - usually goes with 365 days
3% daily - usually goes with 90 days
4% daily - usually goes with 50 days
5% daily - usually goes with 25 days or 30 days
variable% usually goes with 6 months to one year

The best part is the 3% curse.
Believe it or not, programs offering 3% is cursed to close down!

Example:
widegold - 3% daily for 200days
impexinvestments - 3% daily for life
oneinvest.co.uk - 3% daily for 180 days
3x90.com - 3% daily for 90days
Sonicinvestment - 3% daily for 90days
MakeRich.ca - 3% daily for 200 days

But who cares now? A 3% program can help you get into profit in just 34 days!