A type of Ponzi scheme (or investment scam) where investors are promised exceptionally high returns (e.g. 45% monthly or over 100% annually), but are in fact paid by money from new investors, or the money is simply stolen. With the rise of social media and easy digital transactions, such schemes have become more common, often claiming to be backed by reputable or "prime" banks in Europe or the U.S. The largest documented HYIP scam was OSGold in 2001, founded by David Reed as an e-gold imitation. The U.S. District Court estimates up to US$250 million was stolen by OSGold operators.
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