High Yielding Investments – Scam Or Savior?

With the advent of the internet, online fraud and scams have become rampant as con artistes take their schemes from the real world world to the net. Technology has enabled scammers to create beautiful legitimate-looking investment websites, sometimes complete with graphs, a comprehensive affiliate program and investment management platform.

Do not be deceived by online investments schemes that offer returns that sound too good to be true. These types of scam usually lure people by asking them to invest a meager amount at first, usually $10. They are then told that for every dollar they invested, they will receive 10% – 30% Investment Scam each month depending on the sum they invested.

Usually those who invest less than $1000 will only get 10% return per month but those who invest more will be given around 30%. Seeing the 10% return they get on the first month, some folks will actually put in more money by the second month. This is how the scammers lure people, they play on greed.

The website for these schemes also display online statistics of the ‘earnings’ and thus excites the victim to fork out even more money for the scheme. Of course, the main purpose of such scams is to get even more people into the trap so these schemes will pay referral fees to the victims, sometimes as much as $20 per referral.

This is where the online investment becomes a pyramid scheme, where you would be paid by just referring people to join. You are encouraged to create downlines and recruit even more people.

Of course, these kind of schemes usually break down after 6 to 12 months when too many people have joined and it may become too expensive to pay the referral fees or even the monthly returns.

Even if you do receive payment, investors are usually paid from money gotten off of the downlines. The most common trick would be to pay the investors for the first 3 months.

Remember, such schemes are not tied up to any real foreign exchange or investment market, though they may appear to be so. They are not authorized by any Bank, the websites are usually hosted on some foreign country and there are no proof to the earnings claimed on these sites. It is usually difficult to track them down as they use fake addresses and aliases.

The main aim of the investment website is to get as many people as possible to invest their money on the schemes. Once the scammers have all the money they want, they will usually shut down their investment website and run off with the investor’s money.