Private programs, refunds and naive investors

by Tony Clifton

Imagine you were a scammer.

What would you want? What would be your most important goals?

To get as much money as you can and to get out clean.

Most HYIP investors seem to have problem putting themselves in the scammer's shoes. This of course means that they are honest people and hardly can think like a scammer, but also makes them naive and pliable to fraud.

In two occasions I regularly see some otherwise smart people to turn naive when it comes to high yield investing.

Private Programs

It's widely known that when a program announce going private that often means they are about to scam. However if the program keeps paying after few months of closing for new members, most investors turn into easy believers.

Their arguments are simple: "If they were a scam why would they not accept new spends?". "If they were scam, why would they be paying and not just pack and run away?".

These arguments of course make sense. But I have answers which also make sense. Let's before that see the other occasion:

Programs Paying Refunds

This does not happen so often in the HYIP world, but recently we've seen some major scams to issue refunds before disappearing (MPDW, GoldenRocks, WiredSurf, FXIG and more).

Of course the first thing which comes to your mind when you see a program to issue refund is that it can't be scam. Why would a scammer pay some of the money out instead of running with all of it? Why did MPDW paid some money at the end, why did GoldenRocks refund some happy members?

There are good reasons for doing this...

The Reasons

In both occasions listed above we have basically one and the same thing - a program which does not take money, but pays out. Just that fact by itself immediately makes most of us think that the HYIP in question is not a scam.

They want us to think that.

It's really as simple as it sounds. They do it because they want us to believe. Why? Just because of their ego and to calm down their destiny? Maybe some con artists have some moral, but the majority do not.

The reasons are mostly two:


Have you ever done anything wrong in your life? Have you been unfaithful in your marriage, have you skip reporting taxes or have you driven with higher speed that allowed? If ever you've done something wrong you may know what the fear of the consequnces is.

The fear is what makes scammers do everything possible to make you believe they are honest. They are afraid of being caught and put in the jail. We as investors know that this happen very rare, but when you are on the other side, the things are different. Even the slightest danger of being caught breaks your sleep and nerves.

This is especially valid for scams which have provided admin's address and ID. (MPDW or FXIG for example). If people understand that they are scammed and know the admin's name and address they can send authorities against them or just go crazy and visit their houses to "advice" the scammer in person.

That's why instead of just disappearing such programs issue parital refunds, report losses, keep posting in forums or update their members by email about the efforts to "recover" the program.

Future Plans

I can't believe that many investors don't think about this. If you have ever invested long term you shouldn't be surprised that the con artists invest in their fraudient business too. Creating a HYIP scam is a business and these worms are investing in their business in their future.

They issue refunds now to return in the future with their new "limited time" or "private" offer. They are not accepting members now to make us believe that they are for real. Then they will either start accepting members in a new sub-program or just allow the current members (who are completely devoted at this stage are are ready to get a second mortgage) to add more funds to their investments.

Don't be naive, the scammers are not stupid. They don't act straight and their intentions can't be decrypted so easy. They don't follow the simplest logic - if they were doing that, they would never survive the competition. If the scammers were not sophisticated, they wouldn't be able to take so much money from the investors.

There were few real HYIPs who strugled to clean the face of this arena. Most of them just failed, other survived to make 3% - 5% monthly (which is great of course), but most which people considered "real" were just scams. All these programs were trusted at some point, people were passionately defending them on forums, some of them were private, ID verified and issued refunds. They are all scams now. Browse the net to study their stories and you'll learn a lot about the sophisticated scams.

I still haven't seen the real HYIP which pays 10% monthly or close to this figure. Believing that such exists and will work for your $100 is simply naive.


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