Therefore, if no risk assessment is offered, you must have a mind to do your own due dilligence, and to understand your own personal RISK temperment! The Genuine Hyip HYIPS that are genuine are usually run by DIY students of FX Trading, Stockmarket, Futures and or Option trading. They place strong warnings on their web sites about risk and warn people not to invest what they can not afford to lose. They keep a low profile because they are only well aware of the 95% likelihood that their craft learning wont last. Its where they cut their teeth and practice new skills at speculation trading on the ups and downs of the market. These last at the most, about a year. Most of these do not attract great sums of money and the losses are carried well by most people. The Venture Capitalist is another genuine HYIP style, seeking to get startup funds into a business, to propagate cashflows while the company begins slowly. From here unfortunately we deviate from small practicing or slow startup companies.

Enter the professional small time crooks who will usually have a reasonable amount of money behind them in order to set up lavish delusional web sites, full of all the right terminology and platitudes, but without one shred of legitimacy. As a general rule Fraudsters and Scammers, and Ponzis have no real, genuine proofs behind them, are more often to be found offshore, even though they might have certificates on site, on further investigation, governments you will soon see the wood for the trees. Notice that the word "INVESTIGATE" clearly relates to the word "INVEST" It is your investment, and you are the one with most to lose. Generally speaking, If a trusted representative of an investor, can not meet the principals of the company face to face, and verify original documents, one should assume the thing is a Scam no matter how good it all looks. One should also trace down and verify each claim of the HYIP.

If you can't get to the source, don't bother. Unfortunately, high yield programs are riddled, not only with scammers, but even worse, they are inundated with investors operating outside of their own Risk temperment. They will cry foul whenever anything falls over. These are not kind of investors that Venture capital, or FX programs need or wish to cope with. And even if it is legitimate, remember the 95% losses to the 5% win ratio. In Venture Capital or any High Risk Investment, never invest more than what you are happy to risk and lose, without complaining. Contrary to public opinion, a failed venture is not the same thing as a scam! Don't Back a horse that is not there! Even if it is legit, expect 85-95% pain before gain The Laundromat The most prestigious of all the con artists in the HYIP world are what I call "The Laundromats" The laundromats are crime syndicate organizations which exist to clean illegal money from small time to intensely evil organized criminals. Blood Money, if traced to the source, can lead to long prison sentences and in some cases the death penalty. This kind of money has already churned its way through alms dealing, sex slave, slave trading, blood diamonds, murder, drugs, extortion and every conceivable evil under the sun. A Laundromat can make money by literally losing anything up to 50% of funds.

If the cost of cleaning funds is 50% of the principle, so be it. Better than a nice stretch in prison. So the Laundromat in HYIP land can operate for far longer, have plenty of bells and whistles, hire staff, answer the phone etc, and still make their cut, before they close down and shift focus to the next Laundromat, which is already up and coming somewhere else in the HYIP ratings. Their source code is often an exact copy in part or in full of the previous HYIP Laundromat site, and there are many giveaway tell tale marks in a series of Syndicate run HYIPS. Unfortunately, most HYIP investors, do not care a hoot about this. With full knowledge they persist in placing funds in the next Laundromat wave.

The there are the HYIP Mix scammers that place some funds into FX trading to supplement and keep the scam going that little bit longer, Or the ponzi that can keep going until that nice fat deposit turns up. WHAT CAN HYIP Investors do to diminish the effectiveness of these scams? Find a trustworthy reliable person to represent a group or listing site, and report on findings. This is important. But, don't everybody do it or the legit ones will go out of business trying to satisfy authorities. Verify the identity of the Principals
Verify the legitimacy and nature of the Corporate activities.
Verify the nature and legitimacy of Corporate documents THEN Verify what you have verified!
Check the document with authorities. Refuse to invest until you are satisfied of LEGITIMACY. But don't forget! Whatever precautions you take, in HYIPS it is ALWAYS 95% LOSS before a nice paypacket EVERY TIME! If you cant cop that, Then DON'T DO IT!

Editor: Gordon Doherty
Admin Global Mutual