A High-Yield Investment Program (HYIP) is a type of Pyramid Scheme. HYIPs typically accept deposits as low as $1 while promising astoundingly high returns.

Online HYIP schemes rarely last for more than a couple of years. An overwhelming number of cases suggest that HYIPs are Ponzi schemes, in which new investors provide the cash to pay a profit to existing investors, which they typically then withdraw. This approach allows the scam to continue as long as new investors are found and/or old investors leave their money in the scheme, known as compounding (because even higher profits are promised). The SEC has said the following on the matter: "These fraudulent schemes involve the purported issuance, trading, or use of so-called 'prime' bank, 'prime' European bank or 'prime' world bank financial instruments, or other 'high yield investment programs.' ('HYIP's) The fraud artists... seek to mislead investors by suggesting that well regarded and financially sound institutions participate in these bogus programs."[1]

The introduction of e-currencies has made it possible for HYIPs to operate on the internet and cross international boundaries, and to accept large numbers of small investments. HYIPs usually accept deposits by either e-currency, like e-gold, and INTGold, or use specialist third party payment processors like AlertPay, SolidTrustPay, CEPTrust, TriStarMoneyChangers and StormPay. HYIPs typically offer a significant incentive commission (for example, 9% of invested funds) for members to attract and refer new investors.

Most HYIPs disclose little or no detail about the underlying management, location, or other aspects of how money is to be invested (often because money is not actually invested), and relatively little information (other than asserting that they do various types of trading on various stock and other exchanges) on how they actually generate the returns they purport. They are sometimes presented with some form of an emotional appeal, appeals for faith, and promises that they will help investors achieve financial freedom.[2]

Arguably, the largest HYIP scam that has existed on the internet was PIPS (People in Profit System or Pure Investors)[3][4]. The investment scheme was started by Bryan Marsden in early 2004, (according to the Wayback Machine record of [1] and spanned more than 20 countries. PIPS was investigated by Bank Negara Malaysia in 2005 which resulted in Marsden and his wife being charged in a Malaysian court with 97 counts of money laundering involving more than RM77 million - US$20 million[5]. Even after these charges were brought forth many of Marsden's followers/investors continued to support him and believe they would see their money some day.