HYIP Scam Sites

Most HYIP subject sites have a grow list of known HYIP scam sites. We would like to assume (without making an ass of u and me) that some HYIP enablers do not start out to be scammers and try their utmost to keep their promises. Unfortunately, most of them hit a wall after some time and go bust anyway.

Since the HYIP market started growing on the Internet around 2002, there are several THOUSAND HYIP sites that have come and gone. We are currently compiling a database of these sites and we will be making this available online soon.

Hereunder is a list of known scam sites and is compiled as a result of our own DIRECT experience. To avoid all ambiguous interpretation: we invested a small sum of money with them and the money disappeared immediately. No explanation given by the site, site owners not reachable, or traceable, period. That, to us, qualifies for the adjective “scammer”.

November 2008:

Louis Capital http://www.louis-capital.com
LR PM Funds http://www.lr-pm-funds.com
Trade Center Mark http://www.tradecenter-mark.com
Ino Fund Inc. http://www.inofundinc.com

December 2008:

Agave Invest http://www.agaveinvest.com
Great Trader http://www.http://greattrader.biz
Bluestones Capital http://www.bluestones-capital.com
Blue Bogart Funds http://www.blueborgartfunds.com
Might Trade http://www.mighttrade.com
Mania Trade http://www.maniatrade.com

January 2009

Safe Atom https://safeatom.com
BamaInvestment https://www.bamainvestment.net
Centasia http://centasiadevelopment.com
Eko Funds http://ekofunds.com

Ponzi Scheme Temptation. Why Are Ponzi Schemes So Hard To Resist?

Looking at both sides of the ponzi coin, on the face of it, ponzi schemes are hard to resist. Whether you are creating a ponzi scheme or participating in one, a pervasive feeling of omnipotence and endless possibilities will whip interested parties’ imagination into a frenzy. Why?

Your first reaction to a ponzi scheme proposal would be to think it is amazing, very clever and foolproof. On second thought, almost too good to be true. If you have been requested directly or indirectly to be discreet, that everybody will want in on it and that you have to decide right now, chances are you are embarking on a ponzi scheme.

Charles Ponzi was an Italian immigrant who discovered around 1920 that he could more than double his money by buying European International Postal Reply Coupons and swap these for American Post stamps, which he sold for cash. It was perfectly true and legal and it would have worked very nicely, had he not lost himself in his omnipotence frenzy.

The next thing he did was to shop around for funds.
Courtesy of Wikipedia

More on Wikipedia

Looking at Ponzi’s mugshot, one could easily imagine a Holywood producer considering George Clooney to play the lead role of a biographic film on the man’s life. He had looks, charm, deceptively friendly eyes and charisma, some key ingredients one needs to create a bond of instant trust with other people.

As always with easy money, greed was lurking around the corner. Ponzi quickly found people willing to lend him funds because he promised returns of 50% within 45 days. Word of mouth did the rest and it only took a couple of months for him to start reaping millions of dollars.

He was reckless from the start, not even bothering to keep books. A couple of false alarms should have confronted him with reality, but he kept everyone happy by paying his creditors with fresh incoming money until the day someone betrayed his scheme, which is when authorities jailed him.

These days ponzi schemes are a dime a dozen and the strategy still works like a charm. Hardly a week passes by without some or other story of a conviction involving a ponzi scheme being reported by the press. On the Internet, one of the more notorious would be the one involving AdSurfDaily - incorporated in Florida - from which 93 million dollars were seized by the state.

Urinvest review. Online HYIP Provider Urinvest Test Investment Report.

The HYIP market is growing and the number of HYIPS is steadily rising. Among hundreds of other opportunities, we stumbled upon URINVEST (Your Invest Net) and provoked the results of a test investment. It went rather well.

The eternal doubters want proof of investment, so the numbers for the test can be found on HyipSpace.com and these show a net yield of 0,65% per day. If one translates this into something more commonly understood, one has to report a staggering 237% yearly interest rate. Is this even possible? It appears to be.

Although some have already predicted the imminent failing of this online HYIP site, I would be inclined to be optimistic at my own risk and peril of course, because some signs indeed would tend to suggest the pessimists could be right.

Following Due Diligence rules obtained by experience of many investors, the contra indications would be:

a) The high % rule (Urinvest promises 1,60 to 4.50% daily), the rule states: 4% daily - usually goes with 50 days (TalkGold Forum) and Urinvest has been monitored by some for more than 150 days.

b) Pending failure announcement by a blog

c) All HYIP sites sooner or later fail

We hope we are wrong.

HYIP W-MT Fund Review. Due Diligence Report For Online HYIP W-MT Fund.

This report could be read as a “print-screen” picture, or an “as is” interpretation of a situation at a specific moment in time due to the fact that HYIPS are constantly fighting the uphill battle of trying to reconcile market reality with client expectations.

W-MT Funds has an original approach: they do not promise a fixed return. This gives them some wiggle room when trying to rise to customers’ expectations.

At the writing of this report on february 2, 2009, WM-T Funds has been flagged by “DEATHWATCH”, a blog claiming to have compiled a set of guidelines allowing them to predict with reasonable probability when a HYIP is about to fail investors.

What I liked about deathwatch is that their 15th January 2009 list was right about “No Risk Investment” (we lost our principal there) and “Youmilex” (we also lost our principal there) and wrong in the case of Olympex (we got paid and got out) and Urinvest (we got paid and got out), which proves out premise that HYIP investing is equally safe as gambling.

In this case, the odds are at 50%, or the same as coin flipping.

Goldpoll also has W-MT Fund on “waiting” status, while HYIPbanker has W-MT Funds set at “paying”. There are some indicators that should encourage prospective investors to be extra careful when considering investing here.

For one, when one opens the “Opera” web browser to log on to the W-MT Funds site, Opera sends a warning that the site certificate does not match. That is an important change, as this was not the case previously, which means that something fundamental has changed at site management level.

Customers with an invested principal could have been warned with a simple email.

At Hyip.com W-MT is reported “paying” and a message from admin mentions that the site is under maintenance. We have requested a withdrawal today as mentioned on the site and are awaiting the payout scheduled on Tuesday. At the finalizing of this report on Wednesday, February 4th, 2009 we can confirm that W-MT Fund has indeed honored the withdrawal request.

Remember one of the early GoldTalk forum due diligence rules? One of those states that: “variable% usually goes with 6 months to one year”

We hope and pray W-MT Fund, who keeps principals for 26 weeks, will continue to do well and prove all pessimists wrong.

Online HYIPS? Hyip Online Investing Explained In 10 Bulletpoints.

1. HYIP is the acronym for High Yield Investment Plans.
2. It is a term that was invented by bankers for super rich clients, but it is less used by bankers today.
3. Today HYIP is popular on the Internet as a means for investing small sums through the internet while hoping for extraordinarily high returns.
4. Most HYIP sites fail sooner than later.
5. About half of HYIP sites are scammers trying to steal your money.
6. From the 50% that are left, only about two in ten are professional endeavors. The rest are people learning about the business or agents recruiting for bigger organizations, mostly forex businesses canvassing for clients with money to invest.
7. The last seven years alone, more than 11 000 HYIP sites were started and went bankrupt.
8. The HYIP sites community is not self-regulated.
9. Money can be made with HYIP investing, but one has to be very, very careful about it and be prepared to lose.
10. Investing in HYIPS can be done with virtual money, or eCurrency.