Why do HYIPs scam?

Whatever sincere and good-tempered a person may be (seem), instinct of self-preservation works on subconscious level – it comes from nature. HYIPs’ administrators – being undoubted representatives of humans – are not an exception in this regard. Creating their projects they make them live long, in most cases. Program’s longevity is a proof that the admin will get “fresh money” on his account with no special efforts. Nevertheless, everything comes to the end due to some reason. What makes the admins give up? Let’s discuss it below…

Aspiration to capital increase pushes creators of HYIPs to search for new ways of attracting investors. Here all means count: subscriptions by e-mails speaking about solvency, realness and long-term admin’s intentions, massive ad purchase (banners, context ad), reviews and interviews on popular blogs, addition to monitors are far not full list of what resourceful guys elaborate for outlining all seriousness of their further work.

Having studied investors’ psychology for a while, HYIPs’ creators do the following thing in order to look heroes of our time and show their professionalism from the brightest side. They make up unreal problems, stop paying, remove websites for some time in order to be back soon and tell us that not honest hackers decided to steal all the money from him. But the admin will do his best to pay back his investors. As a result, new deposits and investors’ trust are pleasant bonuses for creator’s “fabulousness”.

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Still, investors and admins are not the only parties in our medium. It has been, it is and it will be that holders of good capital are a target for everyone. Finally, the admins have to move to scam, being in the dead end.

Reason #1. Unwelcome attitude of hosting providers and registrars (with further racket probability). HYIPs are considered as fraud projects almost everywhere. It is easy for hosting services to block such websites. Of course, website suspension is not a verdict but the admin will need some days to fix the situation and eliminate panics among investors.

Reason#2. Fraudulent monitors’ activity. It is an established fact that project admin pays monitors for listing. Monitor’s admin, in his turn, is obliged to invest and withdraw definite amount of money. But it doesn’t happen all the time and even if it takes place, he can quickly withdraw funds any time without proper grounding. Massive withdrawal of money distributed by admin for project development, leads to balance devastation.

Reason #3. E-currency account suspension. Such entities of monetary relations as payment systems can also block admin’s accounts without warning. The reason is HYIP’s suspicion. In this case the admin needs to distribute money inflow into several accounts in order not to be left without income and not to kill his creation.

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Reason #4. “Services” of exchange offices. While the admin feels need of quick money exchange, offices purposefully slow down activity and do not give back converted funds. Time is money. Both HYIP and its creator are devoid of them, plus investors’ trust and faith in bright future for his program.

Reason #5. Blackmailers’ attacks. This cohort gathers hackers, cracksmen, Ddos-providers and monitors’ admins. Each of them is able to put the admin up against the wall, damage website a lot, delete database, replace investors’ accounts with hackers’ ones and so on. We all know what it comes to.

Reason #6. Investors’ panics. Despite the existing opinion that the project can be killed only by pros, investors’ power should not be underestimated. Lots of disapproving reviews on forums in compliance with real HYIP’s drawbacks can bring doubts in program’s solvency and annul admin’s attempts to promote and improve his creation, let along our tendency to “hit-n-run” and herd withdrawals (fraught with events) from worthy systems.

Reason #7. Surplus/Lack of cash. It also happens. HYIP’s admin in some moment decides that available capital is sufficient to stop activity. There are also opposite situations when the admin doesn’t have money for payouts due to lack of reinvest and new deposits. The latter case is more widespread. We made sure in it in December. Now we see precise connection among all links of the chain and our mutual influence on the course of events.

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Nevertheless, whatever the reason of scam is, it is always better to witness it from the side. Remember to use power of diversification and your natural intuition!

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