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 Maryland, 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 commonly associated with fraudulent activities. Maryland's securities regulation, administered by the Maryland Securities Division, requires that investment programs must be registered unless they qualify for an exemption. Additionally, individuals who sell investments or offer investment advice must be licensed or registered with the state. The promise of high returns with little or no risk, as is typical with HYIPs, is a red flag for potential investors and is often indicative of a scam. The use of terms like 'prime bank' and aggressive promotion through social media are tactics to lure investors into these fraudulent schemes. Maryland residents are advised to verify the registration of any investment and the licensing of the person offering the investment with the Maryland Securities Division before investing. Furthermore, federal law, enforced by the Securities and Exchange Commission (SEC), also provides regulations against fraudulent investment schemes, and HYIPs promising unrealistically high returns may be subject to SEC investigation and enforcement actions.