Monday, October 30, 2006

Are Online HYIPs legal?

The answer to this question in the vast majority of cases is a simple no.

There are legitimate offline High Yield Investment Programs, however as these are registered businesses they come under much more scrutiny and regulation ensuring their business practices are all legal.

Online HYIPs on the other hand are not. An online HYIP can be set up in as little as an hour or so, by anyone who has access to a computer, the Internet, some web hosting, a domain and a script to run the site with.

These online High Yield Investment Programs more often than not offer a 'guaranteed' return, though of course when you aren't paid when the obvious downfall or closure of the site occurs, this counts for little.

These programs are run on a ponzi basis, until the admin decides to close the site and move on to scam the next bunch of people naive enough to believe HYIPs are their way to quick buck.

HYIPs are immoral, in most cases illegal, and down-right risky.

If you decide to go ahead, research, check-again and then proceed with extreme caution before you step into the dangerous world of online investments.

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