Looking for big money in the grey zone. Simulation of High Yield Investment Programs strategies

Katarzyna Gniadzik; Grzegorz Kowalik; Oskar Jarczyk; Radoslaw Nielek

doi:10.7494/csci.2015.16.3.237

Authors

Katarzyna Gniadzik Polish-Japanese Academy of Information Technology, Warsaw
Grzegorz Kowalik Polish-Japanese Academy of Information Technology, Warsaw
Oskar Jarczyk Polish-Japanese Academy of Information Technology, Warsaw
Radoslaw Nielek Polish-Japanese Academy of Information Technology, Warsaw

DOI:

https://doi.org/10.7494/csci.2015.16.3.237

Keywords:

HYIP, Ponzi scheme, fraud, simulation, strategy

Abstract

High Yield Investment Programs (HYIPs) are online versions of a Ponzi scheme, a fraud that offers extremely high interest rates to attract investors – and pays them up to the moment when HYIP owner decides to run away with the money accumulated in the account. This article presents a simulation focused on the connections between investments in appealing websites, advertising, and runaway strategies to explore and describe one of the grey zone areas. The model is based to a large extent on real-life data acquired from HYIP monitors. In this paper, we have proven that advertising and layout have a great impact on an HYIP’s balance. Moreover, most HYIPs are capable of gaining similar balance; however, there are also conservative strategies that significantly reduce profits.

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