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

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. Keywords HYIP, Ponzi scheme, fraud, simulation, strategy Citation Computer Science • 16 (3) 2015 http://dx.doi.org/10.7494/csci.2015.16.3.237 Computer Science 16 (3) 2015: 237–251 237 

• Type: Journal
• Year: 2015
• Where: AGHCS
• Authors: Katarzyna Gniadzik, Grzegorz Kowalik, Oskar Jarczyk, Radoslaw Nielek
• Keywords: AGHCS 2015