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 Georgia, High-Yield Investment Programs (HYIPs) are subject to both state and federal securities laws. These programs are often unregistered investments run by unlicensed individuals and are commonly associated with fraudulent activities. The Georgia Securities Act of 1973 requires that all securities offered in the state be registered, unless they qualify for an exemption. Additionally, individuals or firms offering or selling securities, or providing investment advice, must be licensed or registered with the Georgia Secretary of State's Securities Division. The promise of high returns with little or no risk should be a red flag for potential investors, as it is a common characteristic of investment scams. The use of terms like 'prime bank' and aggressive promotion through social media are tactics often employed by fraudsters. The Securities and Exchange Commission (SEC) also regulates these types of investments at the federal level and works to protect investors from fraudulent schemes. Georgians are advised to verify the registration and licensing status of any investment opportunity and the individuals promoting them before investing, and to exercise extreme caution when approached with investment opportunities promising unusually high returns.