Typo Tip-Off

Watch out for online postings, website copy or emails that are riddled with typos and poor grammar. This is often a tip-off that scammers are at work.

How to Protect Yourself

HYIPs all too often are short-lived scams. The best way to avoid losing money in these scams is not to put any money in one to begin with. Navigate elsewhere—the sooner the better. Here are some additional tips to protect yourself:

• Ask and check. Always independently verify who you are dealing with and whether the seller of investment is licensed to do business with you. You can see who is behind a website by doing a "Whois" lookup online. You can confirm the status of an individual broker or firm, or investment adviser firm or representative using FINRA BrokerCheck. And you can check with your state banking regulator to confirm whether an e-currency site is registered. You’ll find contact information on the website of the Conference of State Bank Supervisors.
• Exercise skepticism. Bear in mind that most people who sell strategies for getting rich quick make their money on the sales of their books or seminars, not necessarily by practicing what they preach. Ask yourself why they’re "sharing" their "secrets" with you. And do not spend time reading about the latest HYIP strategy—such as when to join, how much to deposit, whether to take a compounding offer or when to exit. A scam like this has no viable investment "strategy."
• Recognize persuasion at work. Rankings and testimonials are tactics fraudsters use to bolster the credibility of the scam—but remember: credibility can be faked. Pay no attention to the experiences of others—good or bad. Pay no attention to sites that rank HYIPs—they are just one more element of the elaborate HYIP ruse. Avoid falling into the trap of thinking that you can outsmart the con artists. In these schemes, sooner or later the investor always loses.

If you have already put money into a HYIP, do not sink any additional funds into it, even if you think it will help you get your original investment back.