Fraudsters often borrow the language of bonds, forex and "Eurobond markets" to make fake schemes sound credible. Websites promising fixed hourly or daily percentage returns, tiered "plans" based on deposit size and referral commissions were common across the internet in the late 2010s and early 2020s. They are known as high-yield investment programmes (HYIPs) and they almost always collapse, with most depositors losing their money.
Warning signs
- Guaranteed or fixed returns, especially per hour, per day or per week.
- Returns far above market rates; a real bond paying even 10% a year is high risk.
- Plans based on how much you deposit, with larger deposits earning higher percentages.
- Referral or multi-level commissions for bringing in new investors.
- Payment only in cryptocurrency or e-wallets, no bank account in the firm's name.
- No regulator authorisation, or a registration number that does not match the public register.
- Vague or unverifiable addresses, "phone only for VIP members" and anonymous owners.
- Pressure to act fast and early small payouts designed to encourage bigger deposits.
How real bond investing differs
Real bonds have an identifiable issuer, an ISIN, a prospectus, a currency, a maturity date and a price that moves with the market. They are bought through regulated firms and held in custody. No legitimate intermediary can promise a fixed hourly profit.
What to do
- Check the firm on your regulator's register and on its warning list of unauthorised firms.
- Do not send more money to "unlock" a withdrawal.
- Report suspected scams to your regulator and the police (in the UK, the FCA and Action Fraud).