Look at these returns. Ance Finance.com 6% hourly for 21 hours, 135% after one day, 75% daily for 2 days, 175% after 2 days.

ChokoMoney 135% after 7 days, $3,000 maximum deposit. Wow!

These high yield investment programs (HYIPs) are promising more than what you could make on a lucky day gambling in Vegas. This Vegas Guide and Gaming Tips website suggests you can get about:

  • 1.4% playing craps (drops to about .7% with odds bets)
  • 1.5% playing blackjack
  • 5.3% playing Roulette.

Some of those percentages are similar to the daily returns that some of the HYIP schemes promise. Do you think you could beat the house in Vegas every day? No? Do you believe the HYIPs can beat the house every day? Neither do I. The HYIPs promise unbelievable returns that are, in my opinion, complete fiction. (HYIPs are according to Wikipedia, a “type of Ponzi scheme.)

What’s the difference between gambling in Vegas and investing in a HYIP scheme? In Vegas, you know the odds are stacked against you, but at least you have the chance of winning and having some fun in Vegas. With a Ponzi scheme, you stand to lose everything when the scheme collapses. And that is not fun.

Suggested Reading

Answers to a few questions asked at our Smart Shoppers 2011 booth

In your community this month

Fraud Warning Signs: Be Aware Before Investing

More Resources

In your community – November 2012

BCSC staff ambassadors tour the province, helping people to protect themselves from fraud and unsuitable investments. Our goal is to enable BC investors to develop critical thinking skills so they can become more informed of steps they should take to protect themselves when investing.   Where we are this month    Qualicum Probus Club   […]

Helping our kids become better money managers

  In the past few years, financial literacy has become a hot topic. Designating November as financial literacy month in Canada is another positive step in raising awareness and encouraging dialogue around the subject.   In writing some blog posts this month, and reading over our National Report Card on Financial Literacy, I came to the […]