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 Utah, 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. Utah's Division of Securities within the Department of Commerce is responsible for enforcing securities laws and protecting investors from such investment scams. The hallmark of an HYIP scam is the promise of exorbitant returns with little or no risk. Utah investors are cautioned to be wary of any investment opportunity that promises unusually high returns, as these are often indicative of fraudulent schemes. The use of terms like 'prime bank' and aggressive promotion through social media are red flags. Utah law requires that investments be registered with the state and that individuals selling investments be licensed. Investors are encouraged to verify the registration and licensing status of any investment program and the individuals promoting them before investing. Additionally, federal law, enforced by the Securities and Exchange Commission (SEC), also prohibits fraudulent investment schemes and provides guidelines for legitimate investment offerings. Utahns are advised to report any suspicious investment activity to the Utah Division of Securities or the SEC.