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 New Mexico, 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. The New Mexico Securities Division of the Regulation and Licensing Department is responsible for enforcing securities laws that protect investors from such scams. Under these laws, investment programs must be registered, and 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. The use of terms like 'prime bank' and aggressive promotion through social media are common tactics used by fraudsters to lure investors. New Mexico residents are advised to verify the registration and licensing status of any investment program and the individuals promoting them before investing. Additionally, federal laws enforced by the Securities and Exchange Commission (SEC) also apply, and the SEC actively pursues actions against HYIPs that are found to be fraudulent. Investors are encouraged to report suspicious investment schemes to the New Mexico Securities Division or the SEC.