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 Ohio, High-Yield Investment Programs (HYIPs) are generally 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. Ohio securities laws, enforced by the Ohio Division of Securities, require that investment opportunities, including HYIPs, be registered unless they qualify for an exemption. Additionally, individuals or entities offering investment advice or selling investments must be licensed or registered with the state. The promise of exorbitant returns with little or no risk, as is common with HYIPs, is a red flag for potential investors and is often indicative of a scam. The use of terms like 'prime bank' and aggressive promotion through social media are tactics to lure investors into these fraudulent schemes. Ohio residents are advised to exercise extreme caution and to verify the registration and licensing status of any investment program or advisor with the Ohio Division of Securities before investing. Moreover, federal laws under the Securities and Exchange Commission (SEC) also provide regulations against such fraudulent investment schemes, and the SEC actively pursues actions against entities promoting HYIPs that are found to be fraudulent.