Selective Scams: How HYIPs Pay Some Investors But Not Others

One of the most deceptive and frustrating types of HYIP collapse is the 'selective scam'. This is a tactic where a failing program doesn't stop paying everyone at once. Instead, the admin strategically continues to process some withdrawals while ignoring others. This creates a confusing period where the program's official status is 'Paying', but many individual investors are losing their money. Understanding how and why selective scams work is key to interpreting conflicting reports and protecting yourself.

The Admin's Strategy: Maintaining the Illusion

As a HYIP nears the end of its lifecycle, its cash flow becomes negative. The admin knows the end is near but wants to squeeze out a few more days of deposits. A full shutdown would instantly trigger a 'Scam' status on all monitors. A selective scam is a more nuanced exit strategy.

The admin will typically continue to pay:

• The Monitors: This is the highest priority. By paying the monitors, the admin keeps the program's official status as 'Paying', which is what most new investors look at.
• Small Withdrawal Requests: Processing withdrawals under a certain amount (e.g., under $10) serves two purposes. First, it keeps many small investors happy and posting payment proofs. Second, it's cheap for the admin.
• Promoters and Shills: The admin will keep their army of shills happy so they continue to defend the program and attack critics.

At the same time, the admin will ignore:

• Large Withdrawal Requests: Any request over a certain threshold (e.g., $50 or $100) will be left as 'pending'. These are the withdrawals that would actually drain the admin's remaining funds.
• Investors in VIP Plans: These high-dollar investors are almost always the first to be cut off.

The Result: A Confusing Mess

A selective scam creates a chaotic information environment. On a forum thread, you will see a mix of posts:

• "Paid instantly! Great program!" (from a shill or a very small investor).
• "My $200 withdrawal has been pending for 2 days! Is there a problem?" (from a regular investor).
• "You are a liar and a slanderer! I just got paid!" (a shill attacking the person with the problem).

Meanwhile, the monitoring sites all show a green 'Paying' light because their own small withdrawals are being processed. This is why you can never rely on a single source of information.

How to Spot a Selective Scam

This is where the value of community forums becomes paramount. You must read the user comments and look for a pattern.

1. Look for 'Pending' Reports: A single, credible report of a large pending withdrawal is a massive red flag, even if others are still being paid.
2. Note the Amounts: Pay attention to the amounts being discussed. Are all the 'Paid' reports for small amounts ($1-$10) while the 'Pending' reports are for larger sums? This is the classic signature of a selective scam.
3. Trust Established Members: If a veteran forum member with a long history reports a problem, take it very seriously. Their word is worth more than ten positive posts from new accounts.

Expert Advice: The First Complaint is the Only One That Matters

Edward Langley has a strict rule for this scenario. "The moment I see the first credible, detailed complaint about a significant pending withdrawal, the program is dead to me. I don't care if 50 other people are still posting payment proofs for $5. The admin has shown their hand. They are now managing their exit. Any money left in that program is already gone. Your only job is to warn others and move on. The selective scam is proof that you must read the fine print of community feedback, not just the headlines from monitors."

By understanding this deceptive tactic, you can learn to spot the subtle signs of decay long before the program's official status turns red, giving you a crucial head start in protecting your capital.

Author: Edward Langley, London-based investment strategist and contributor to several financial watchdog publications. He focuses on risk assessment and online financial security.