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 Missouri, 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. The Missouri Securities Act of 2003 requires that all securities offered or sold 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 Missouri Secretary of State's Securities Division. The promise of unusually high returns with little or no risk, as is typical with HYIPs, is a red flag for potential investors and is often indicative of a scam. The use of terms like 'prime bank' and the promotion of these schemes through social media are tactics to lure investors. Missourians are advised to exercise extreme caution and to verify the registration and licensing status of any investment program or advisor with the Missouri Secretary of State's Securities Division before investing. At the federal level, the Securities and Exchange Commission (SEC) also takes action against fraudulent investment schemes, including HYIPs, to protect investors.