$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
high-yield investment program (HYIP) scam
HYIPs are fraudulent online investment platforms that promise extraordinarily high returns, sometimes 1-10 percent daily, funded entirely by new investor deposits in a classic Ponzi structure.
“pyramid scheme”
↓ 8%Key indicators
Usually targetsInvestors
Often hitsTech workers and developers
Common regionUnited States
Last updated2026-04-04
Estimated impact
$9.0K
median reported loss
Typical range$900 – $180K
Recovery rate~8%
Annual reports11,000
Scam breakdown
1
Operators create slick websites with dashboards showing growing balances and launch marketing campaigns on forums and social media
2
Early investors receive real payouts funded by new deposits, generating testimonials and trust that attract more investors
3
The site operates for weeks to months before the operator executes an exit scam, shutting down the site and disappearing with all remaining funds
What to do first
Understand that returns of 1 percent per day would be 3,678 percent annually, which is impossible for any legitimate investment
Related terms
HYIP scamhigh-yield Ponzidaily profit investment scamPonzi and pyramid schemesWebsiteStableInvestorsCrypto usersYoung adultsTech workers and developersEducators and studentsInvestors and tradersUnited StatesRussiaUnited KingdomHYIP scamhigh-yield Ponzi
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Olga, 35, a investors, encountered what appeared to be a legitimate ponzi and pyramid schemes situation while using Website. Operators create slick websites with dashboards showing growing balances and launch marketing campaigns on forums and social media
Step 2
What happened next was calculated: Early investors receive real payouts funded by new deposits, generating testimonials and trust that attract more investors
Step 3
The pressure escalated quickly: The site operates for weeks to months before the operator executes an exit scam, shutting down the site and disappearing with all remaining funds
The outcome
Olga realized something was wrong when returns of 1 percent or more per day are promised, far exceeding any legitimate investment return. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Understand that returns of 1 percent per day would be 3,678 percent annually, which is impossible for any legitimate investment Olga's experience shows why returns of 1 percent or more per day are promised, far exceeding any legitimate investment return and platform accepts only cryptocurrency deposits, making fund recovery nearly impossible are the clearest early warning signs.
How to identify it
- Returns of 1 percent or more per day are promised, far exceeding any legitimate investment return
- Platform accepts only cryptocurrency deposits, making fund recovery nearly impossible
- Website domain was registered recently and the company has no verifiable physical address or regulatory registration
- Pause before paying, clicking, or sharing information. Scammers rely on speed.
- Verify the sender, company, or agency using a phone number or website you already know is legitimate.
- Treat secrecy, urgency, and off-platform payment requests as strong scam signals.
What to do now
- ✓Understand that returns of 1 percent per day would be 3,678 percent annually, which is impossible for any legitimate investment
- ✓Check HYIP monitoring sites to see if the platform has already been flagged as a scam
- ✓Report HYIPs to the SEC and FBI IC3 and never invest money you cannot afford to lose completely
What to save before reporting
- ✓Save the message, profile, phone number, email, or URL that was used.
- ✓Keep payment confirmations, receipts, and account alerts before you dispute or delete anything.
- ✓Write down the timeline while the details are still fresh.
How big is this problem
You are not alone — this scam affects millions of people.
These numbers come from government agencies and official reports. If you have been affected, know that this is a widespread problem — not something that only happens to careless people.
FTC 2024 fraud losses
Imposters
Most common FTC fraud category in 2024
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
- This scam family tends to persist because the social-engineering pressure works even when the exact scripts, platforms, and payment methods change.
- The specific packaging evolves over time, but the core pattern usually stays the same: create urgency, control the channel, and push action before verification.
- The SEC warns that HYIPs are nearly always fraudulent, and the FBI IC3 regularly receives complaints about these programs with total losses in the billions
Recovery and follow-up
- ✓Save the messages, receipts, account alerts, and transaction details before you block or delete anything.
- ✓Report the scam through the official platform or government channel that best matches where it happened.
- ✓Understand that returns of 1 percent per day would be 3,678 percent annually, which is impossible for any legitimate investment
- ✓Check HYIP monitoring sites to see if the platform has already been flagged as a scam
- ✓Report HYIPs to the SEC and FBI IC3 and never invest money you cannot afford to lose completely
Why this pattern keeps working
Even when the story changes, most scams still use the same pressure pattern: urgency, authority, and a request to move money or data fast.
The SEC warns that HYIPs are nearly always fraudulent, and the FBI IC3 regularly receives complaints about these programs with total losses in the billions
FBI IC3 2024
Where to report it
If you have been targeted by this scam, reporting it helps authorities track the pattern and protect others. United States has dedicated agencies that handle fraud reports.
ReportFraud.gov
Federal Trade Commission
Central U.S. consumer fraud reporting portal.
File an IC3 complaint
FBI Internet Crime Complaint Center
FBI portal for internet-enabled crime reports.
Start identity theft recovery
IdentityTheft.gov
Official U.S. identity theft recovery plan builder.
Explore further
Understand the bigger picture
Who is most at risk
Who this scam targets
Primary targets
Investors, Crypto users, Young adults
Geographic concentration
United States, Russia, United Kingdom
Primary channel
Website — Ponzi and pyramid schemes
Why this group is vulnerable
Investors are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The ongoing nature of reports suggests that awareness among this demographic remains low.
Sources and methodology
How we verify this information
OpenScam tracks scam patterns using a combination of government consumer protection databases (FTC, IC3, Action Fraud), platform-specific fraud reports, and verified consumer complaint data. Each entry is cross-referenced against at least two independent sources before publication.
Severity ratings are based on financial impact potential, reversibility of damage, and volume of reports across multiple reporting channels. Trend velocity reflects the rate of change in report volume over the most recent 90-day window.
This page was last verified on 2026-04-04. Red flags, recovery steps, and reporting resources are reviewed quarterly against current agency guidance.
Evidence and indicators
- The SEC warns that HYIPs are nearly always fraudulent, and the FBI IC3 regularly receives complaints about these programs with total losses in the billions
Source notes
- FBI IC3 2024
Frequently asked questions
Common questions about high-yield investment program (hyip) scam
How does the high-yield investment program (hyip) scam work?+
Operators create slick websites with dashboards showing growing balances and launch marketing campaigns on forums and social media Early investors receive real payouts funded by new deposits, generating testimonials and trust that attract more investors The site operates for weeks to months before the operator executes an exit scam, shutting down the site and disappearing with all remaining funds
What are the warning signs of high-yield investment program (hyip) scam?+
Returns of 1 percent or more per day are promised, far exceeding any legitimate investment return Platform accepts only cryptocurrency deposits, making fund recovery nearly impossible Website domain was registered recently and the company has no verifiable physical address or regulatory registration
What should I do if I encounter high-yield investment program (hyip) scam?+
Understand that returns of 1 percent per day would be 3,678 percent annually, which is impossible for any legitimate investment Check HYIP monitoring sites to see if the platform has already been flagged as a scam Report HYIPs to the SEC and FBI IC3 and never invest money you cannot afford to lose completely
Who is most at risk for high-yield investment program (hyip) scam?+
This scam primarily targets Investors, Crypto users, Young adults. It is most commonly reported in United States, Russia, United Kingdom and typically appears on Website.
Is high-yield investment program (hyip) scam still active?+
high-yield investment program (HYIP) scam is currently on our watch list. It has been reported across US, RU, UK. Last updated 2026-04-04.
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Help someone avoid this scam.
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