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 Indiana, as in other states, 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 frequently associated with fraudulent activities. Indiana's securities laws, enforced by the Indiana Securities Division, require investment programs to be registered and for individuals selling these investments to be licensed. The promise of high returns with little or no risk is a red flag for potential fraud. The use of terms like 'prime bank' and aggressive promotion through social media are common tactics in HYIP scams. Indiana residents are advised to verify the registration of any investment and the licensing of the person offering the investment with the Indiana Securities Division before investing. Additionally, federal laws under the Securities and Exchange Commission (SEC) also provide regulations against fraudulent investment schemes. The SEC actively warns against HYIPs and similar investment scams, and it prosecutes fraudulent activities that violate federal securities laws.