How to spot red flags and other danger signals in the HYIP arena?
HYIP Cash
By: slamothe
How to spot red flags in the HYIP arena? HYIP's are high yield investment programs offering unbelievably high returns usually in the area of 1-2% per day or more.
Instructions:
Step 1
Look for any attempt by the website operator to disguise themselves as a legal entity. These could be words or phrases like not having to pay taxes, avoidance of regulatory scrutiny, attempts at being anonymous, private placement, off-shore registration to avoid surveillance by government or other authorities. In today's world of government watchdogs, banks and other investment institutions always conform to the "know your customer" rules and guidelines so if a program is not asking for that, take note.
Step 2
Where is the site being advertised? If it is not being advertised on regular investment or other financial sites or areas why not? Are certain payment processors being excluded from being used by this particular program? Is the program registered with any security agency? What is their history? How do they make such high profits so that they can pay you those big returns?
Step 3
Be constantly on the alert. Look for any indication of a potential problem or red flag that may indicate a program is heading for trouble such as missed or delayed payments or messages from the administration talking about government intervention. Participate in discussion groups and forums. Educate yourself so that you can easily recognize Ponzi's and other scams.
Tips & Warnings:
Even with red flags it is still possible to win in the HYIP arena, but you may want to get in, recover your principal fast, and then continue playing the game with your winnings.
HYIP Cash
