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 Kansas, 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. Kansas securities laws, enforced by the Kansas Office of the Securities Commissioner, require investment programs to be registered and overseen by the state. Additionally, individuals or entities offering investment advice or selling investments must be licensed in Kansas. The hallmark promises of HYIPs, such as unusually high returns with little or no risk, are classic signs of investment fraud. Federal law, through the Securities and Exchange Commission (SEC), also regulates investment programs and provides guidance on avoiding investment scams. The SEC warns against 'prime bank' programs, which are often associated with HYIP frauds. Both Kansas residents and regulators are vigilant against such schemes, and residents are advised to conduct thorough due diligence and consult with an attorney before investing in any program that offers unusually high returns.