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 Maine, 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. Maine's securities laws, enforced by the Maine Office of Securities, require that investment programs must be registered and that individuals offering investment advice or selling investments must be licensed. The promise of high returns with little or no risk is a red flag for potential fraud. Maine investors are advised to verify the registration of investment programs and the licensing of individuals offering these investments through the Maine Office of Securities. Additionally, federal laws under the Securities and Exchange Commission (SEC) also apply, and the SEC frequently issues warnings about HYIPs and other investment scams. The use of terms like 'prime bank' and aggressive promotion on social media are tactics often associated with these scams. Maine residents are encouraged to exercise extreme caution and conduct thorough due diligence before investing in any program that offers unusually high returns.