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Private HYIP: truth and lie

You have probably heard of private investment programs, telling about their offshore registration and being kept in strict confidentiality. Don’t believe it: it’s no more than a cover, a lame story, created for attracting extra capital.

In most cases such programs don’t have a referral program and accept new members only by invitation (Invitation Code). Don’t make a big deal out of it. The only difference between such programs and the regular ones is that they last for much longer than public HYIP.

Also, be careful with programs promising to go private – in most cases, it means their upcoming closure. You have to realize that a pyramid scheme relies on the influx of new capital, so its closure to public and switching to the private mode means its death. In most cases it is done only with the purpose of persuading old members to make additional deposits in order to collect more money before the closure.

Speaking of lie in the HYIP world, there’s plenty of lies in this area. Try not to believe what you are reading on program websites, conduct your own analysis, and discuss projects on forums with experienced investors. Analyze interviews, given by admins: pay attention to the way they are answering questions, whether they try to avoid addressing the question directly or tell the truth? This will help you to make the right decision. If in response to the question “How do you generate income for your members?” the admin presents some standard phrase, like “FOREX, betting and so on” - he is most likely lying and doesn’t even know the current ration between US Dollar and Euro...

Remember that the Disclaimer section of any HYIP indicates that the administrator is not responsible for your money and you are depositing them voluntarily. Of course, theoretically you can file a lawsuit, but even if you manage to prove that you have been scammed and a lengthy investigation will be conducted, which might take a few years, the most of what you can expect is the imprisonment of the scammer (just the way it happened with the admin of “Brideby”). You are not likely to see your money again even in case of a positive outcome. Not to mention that you will most likely not be able to cover the expenses of a police investigation if your deposit is very small – it will be much more expensive that way.

HYIP are always on the edge of law – never forget about it, since they might be against the laws of your country.

If, in spite of everything, you have decided to choose the hard path of an HYIP investor – we sincerely wish you best of luck in this uneasy business.