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 Wyoming, 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. Wyoming residents should be cautious of any investment opportunity that offers unusually high returns, as these are often indicative of fraud. The Wyoming Secretary of State's Office oversees the regulation of securities within the state and enforces the Wyoming Uniform Securities Act. This Act requires the registration of securities offerings and licensing of individuals and firms offering investment opportunities. Additionally, the U.S. Securities and Exchange Commission (SEC) regulates securities at the federal level and provides oversight to protect investors from fraudulent schemes, including HYIPs. The SEC has issued warnings about these types of programs and advises investors to be wary of any investment that sounds too good to be true. If approached to invest in an HYIP, especially one promoted online or through social media, Wyoming residents should verify the registration of the investment and the licensing status of the person or entity offering the investment with the Wyoming Secretary of State's Office or the SEC before proceeding.