Encyclopedia investor. Investment strategy and tactics. Warning signs / scammers tactics i.
This tactic called "Pay the small fish and the big fish will come". The HYIP has being paying daily for few months without fail. Their membership growth rate is healthy.
Suddenly they announced a new plan, which is more much more attractive than the current plans. This new plan is usually on a compounding basis whereby you can only withdraw only after a month or so. The new plan also requires you to invest a higher spend than the other plans.
People will fall for it because the HYIP had gain much public trust after months of consistent payout.