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A Matter of Trust

I believe one of the most destructive features contributing to people's failure to recognize when the time is right to leave certain programs is the matter of trust. Your trust in the admin, how he misleads you into giving it to him, and how he ultimately exploits it for his own gain. So this brings me to the subject matter of this issue of today's article, the latest in the series looking at some of the inner workings of the HYIP industry. So there’s basically one simple rule in play here – you must NEVER trust any admins! I mean if one of these guys tells you what day of the week it is you should go check a calendar. If one of them tells you the time of day you need to check your watch (assuming he hasn’t tried to steal it first that is, lol!). It’s one thing when you’re playing HYIPs for fun, aware of the fact that they’re all ponzies but comfortable with the risk as you’re only spending sensible amounts you can afford. I would rate MNO readers among the smarter industry players in that regard, by the way. But it’s another matter entirely if an investor genuinely take the stories doled out by HYIP admins at face value and believe they can somehow magically double your money in a month, something the greatest financial wizards in history would not achieve. The faster you wake up to this fact the better. All HYIPs are ponzies and that is a FACT. But as more admins compete for less investors, they will pull every stroke in the book to convince you that you can “trust” them and that they only have your best interests at heart.
How many times have you logged on to major HYIP forums to follow the fortunes of your favorite programs and seen page after page of naïve posters saying things like “very honest admin – he just paid me $0.30 cents” or “the admin paid me $0.20 cents within an hour – surely this program is no ponzi and will run forever!”. Sometimes I’m almost tempted to laugh at such posts, but then of course I remember that these are real people with real money and they have a couple of harsh lessons coming to them that they’re going to learn the hard way. A lot of these admins are skilled conmen and they prey upon such inexperience, perhaps more than any other single factor sometimes. But what are the tricks used to gain so much trust in the first place? Why exactly are so many people willing to hand thousands of dollars over to complete strangers who don’t use their real names, don’t give you their addresses, and channel your money into their own bank accounts through totally anonymous internet exchangers that can’t be traced? Read on and we’ll take a look at some of the most common tricks in use. See if any of this sounds familiar….
1) Offer a “reasonable” return of 1% for 200 business days for instance with principal returned on expiry. Sure, in HYIP terms that may be achievable up to a point, but look at this this way – you still triple your money within a year which is IMPOSSIBLE for any offline real business. Apple can’t do it. Microsoft can’t do it. Government bonds can’t do it. Barclays Bank can’t do it. Personally I don’t think I’ve ever seen anything much better than 10% per year. But you think some guy running an online ponzi scheme from an internet cafe can? Dream on! And if it was possible just ask yourself why on earth the admin needs your money to do it at all. Why can’t he do it with his own? Because if those rates were possible you could be a millionaire very quickly with only a very very modest start up capital.
2) Certificates of incorporation. Maybe you think that because the admin is the head of a properly registered company he can somehow be trusted? That if things don’t work out the way you wanted that he can at least be held accountable for his actions? Wrong again! If anything could be described as quite literally “not worth the paper they’re written on”, then it’s these things. I mean in the most obvious cases they can simply be put together by anyone with even a rudimentary knowledge of graphics or document design. Failing that they can also be photoshopped.
But why go to the bother of doing that when genuine certificates of company incorporation can be obtained for almost no effort, no questions asked, totally legal, and all online. You can register a company in a country you’ve never even heard of, much less actually live in. In recent times several of the so called “off shore” jurisdictions (Seychelles, Belize, etc) have issued warnings about the abuse of this system. Problem with that is it generally takes them well over a year to issue such warnings, they fail miserably in reaching the audience the warnings should really be aimed at, and of course most of the damage has been done before any of these woefully ineffective governmental bureaucracies get into gear and start taking any kind of action. I’ll give you an example of just how easy it is to get yourself a proper, fully legal, certificate of incorporation (as I have one myself, obtained as part of an online experiment). Read the following article from the MNO archives about that here.
3) Postal addresses. Just as pointless as the certificates of incorporation. Don’t think that because a HYIP admin gives you the address of his company that you will actually find him there if you call in some afternoon. No way Jose! The only thing you’re gonna find is a bunch of confused office clerks shrugging their shoulders at you and telling you there is no such company in this building. Don’t believe me? Well I went out and checked a couple of them myself one day a couple of years ago when I lived in London. Personally I wasn’t surprised but I remember the reaction of a lot of readers at the time. They lived a long long way from these supposed offices so obviously were in no position to go check up on them like I was. Many folks could scarcely believe that these “trusted and honest” HYIP admins could be so sneaky! Nothing illegal happened as such, but it is a very very misleading practice. To read more about what I’m talking about, including some photos, read the full article originally published here.
4) Another trick to gain the investors trust and lure him into spending more than he can afford is the issuing of certificates confirming your deposits, “legal” PDF contracts, and written guarantees of your investments. All as utterly worthless as the afore mentioned certificates! As we’ve already established none of these people are using their real identities or their real addresses (ID’s are at best fake and at worst stolen, but they certainly ain’t real) so how can any of these slips of paper possibly be worth anything? Because if you get scammed and you bring these documents to a real legal professional chance are you’ll get laughed out of his office.
5) Running all types of makeshift lotteries, raffles, contests, et cetera. OK, granted these things can actually be a bit of fun and an easy way to make a couple of extra bucks from the program on top of your interest payments, and they can have the beneficial effect of making the members feel more involved in the promotion. Or at least when the contests are run fairly. Because some of the most dishonest admins have the rank and file members do all the promotional work trying to win a couple of dollars, except when it comes time to pay they simply fix the results so that the prizes go to “investors” who don’t really exist. They’re just empty accounts created by the admin under made up names created so they can avoid having to pay the real winners a prize. To make it worse sometimes these prizes are barely a measly twenty bucks in the first place, demonstrating how downright mean and dishonest the admin was to begin with. Again, how on earth could you trust a person like that with your money?
6) Another way to get some of the less savvy investors still new to the industry is to become a self-appointed expert on all types of hilarious business activities. You name it, I’ve heard it, and every single one of them was a lie of monumental proportions. And it’s not just the usual HYIP favorites like ForEx trading or stocks either. It can be something more exotic – producing honey and beekeeping, piggybacking on other programs, the porn industry, even remodeling second hand Chinese motorcycles for sale on the European market for God sake! It’s a simple matter of telling you something like hey, I know how to double your money and you don’t! Trust me, I’m an expert! This is a real business! Would I lie to you?” If these guys really were involved in actual business they would have no problem getting a bank loan at a tiny fraction of the cost of the interest they offer you, right? Except there is no ForEx trading, and there is no real business. Just tricks to get new investors to cover the cost of paying the old ones while the admin follows the number one rule of siphoning off as much of that cash as he can possibly get away with before the pyramid inevitably collapses.
Remember that admins will basically tell you anything in order you to spend more money, and the real victory is in getting you to spend more than you originally intended to. Spent more than you can afford to lose? Don’t expect the admin to worry about it – that’s your problem and he probably thinks it’s kinda funny. The whole HYIP industry is based on lies but if you find yourself trusting one particular admin, thinking “he’s not really part on the HYIP industry, he’s a real businessman just working online” then I’ve only got one thing to say to you – wake up and get your head out of the clouds, because if you really believe that then he wins and you lose. I would suggest NEVER ever trust anyone in this business. Very few admins ever admit that they are running ponzies and do not have any additional income beyond other investors’ deposits. But even in this event they still can’t be trusted as these HYIPs come and go just like the others and the task for the investor is to spot a the promising ones, make a profit from it, and get out again at the right time.
On a side note by the way, wanna know how to tell if one of those so-called “real investment” opportunities floating around at the moment claiming to be involved in things like property development or whatever are really just online ponzies masquerading as real businesses? Simple. They accept PerfectMoney! For future reference please note that any investment website you find that accepts payments through PerfectMoney is a 100% ponzi. PM provide a good service, don't get me wrong here as I mean no disrespect to them personally, but they can also be used as a money laundering tool. You can’t deposit money and you can’t withdraw money without using an anonymous third party exchanger. Therefore nobody, not even PM themselves, know where the money comes from or where the money goes. Under NO circumstances will any business or financial institution that is working under license and in compliance with the law in ANY country be legally using such a service. If you run a business you must be able to keep proper accounts that can be examined by the authorities recording where your money comes from and where it goes. Anyone using anonymous internet based payment handlers will not be able to do so, and if anyone tries to tell you that I’m not correct about this matter either doesn’t know what they’re talking about or are trying to tell you even more lies. Incidentally I myself am not particularly bothered by any of that by the way. I’m fully aware of how the industry really works and am under no illusions as to what’s going on here. I simply think you should be aware of it as well and know that it’s a gamble.
But what I’m not doing here is sharing other types of investment strategies because every investor should develop the tactics most suited for him personally and adjust them as conditions within the HYIP industry change. There is no real recipe for success and no absolutes, but with experience and hard work you will certainly be able to make money from HYIPs. Just remember that they are all ponzies and the only thing aim of their owners is to persuade you to spend, spend, spend, like there’s no tomorrow. Be aware of it but don’t be afraid of it, understand the situation you’re getting yourself into before you do it, learn the tricks so you don’t get caught by them, and try to be smarter than the scammers! HYIPs exist primarily as a vehicle for raising money for their owners, and this article won’t guarantee your earnings. But it will make the HYIP industry a hell of a lot easier to play if you are at least familiar with your surroundings and know the real nature of what’s going on around you.