High-Yield Investment Programs (HYIP) are unregistered investments typically run by unlicensed individuals—and they are often frauds. The hallmark of an HYIP scam is the promise of incredible returns at little or no risk to the investor.

An HYIP website might promise annual (or even monthly, weekly, or daily!) returns of 30 or 40 percent—or more. Some of these scams may use the term “prime bank” program. Fraudsters may use social media to promote an HYIP website or may encourage investors to use social media to share information about a HYIP website with others. If you are approached online to invest in one of these, you should exercise extreme caution—they are likely frauds.

In Arizona, High-Yield Investment Programs (HYIPs) are generally subject to both state and federal securities laws. These programs are often unregistered investments run by unlicensed individuals and are frequently associated with fraudulent activities. Arizona's Securities Division within the Arizona Corporation Commission is responsible for enforcing state securities laws, which require investment programs to be registered and overseen by the Commission. The promise of high returns with little or no risk is a red flag for potential fraud. Additionally, the use of terms like 'prime bank' can be indicative of a scam. The Arizona Corporation Commission can issue cease and desist orders, fines, and can refer cases for criminal prosecution. At the federal level, the Securities and Exchange Commission (SEC) also takes action against HYIPs that are found to be fraudulent. Both state and federal laws aim to protect investors from fraudulent schemes, and individuals are encouraged to verify the registration of any investment and the licensing of the person offering the investment before committing funds. If approached with an HYIP, especially online or through social media, individuals should be extremely cautious and consider reporting the scheme to the Arizona Corporation Commission or the SEC.