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 Oklahoma, 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. Oklahoma securities laws, enforced by the Oklahoma Department of Securities, require that investment programs be registered and that individuals offering investment advice or selling investments be licensed. The hallmark promise of HYIPs of extraordinary returns at minimal risk is a classic sign of investment fraud. The use of terms like 'prime bank' and aggressive promotion through social media are tactics to lure investors into these schemes. Oklahomans are advised to exercise extreme caution and to verify the registration and licensing status of any investment program or advisor with the Oklahoma Department of Securities before investing. Additionally, 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 offering unregistered securities or fraudulent investment programs.