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 West Virginia, 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 promise of exceptionally high returns with little or no risk is a common characteristic of HYIP scams. West Virginia's securities laws, enforced by the West Virginia Securities Commission, require investment programs to be registered and overseen by the state. Additionally, individuals and firms offering investment advice or selling investments must be licensed in West Virginia. The use of terms like 'prime bank' and aggressive promotion through social media are red flags for potential investors. At the federal level, the Securities and Exchange Commission (SEC) also regulates investment programs and actively pursues actions against fraudulent schemes, including HYIPs. West Virginians are advised to verify the registration and licensing status of any investment program and to be skeptical of any investment opportunity that promises unrealistic returns with minimal risk.