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 Idaho, 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. Idaho's Uniform Securities Act (Idaho Code §§ 30-14-101 through 30-14-603) requires securities to be registered and provides regulations for broker-dealers, investment advisers, and their representatives. The Act also prohibits fraudulent and other unlawful practices in connection with the offer, sale, or purchase of securities. At the federal level, the Securities and Exchange Commission (SEC) oversees and enforces securities laws that prohibit fraud, including the operation of HYIPs that promise unrealistic returns with little to no risk. The SEC can take action against such schemes. Idaho residents are advised to verify the registration of any investment and the licensing of the person offering the investment with the Idaho Department of Finance before investing, and to be skeptical of investment opportunities promising unusually high returns with little or no risk.