In the trust-starved desert of the High-Yield Investment Program (HYIP) world, a long-running, reputable monitor is an oasis. It is a 'sleeping giant'—a trusted institution that has provided reliable data for years. Investors, both new and old, come to depend on its authority. But what happens when this trusted guardian decides to betray its flock? The most dangerous and damaging type of scam in the entire ecosystem is the 'rogue monitor' event, where a trusted monitor leverages its reputation to execute a massive, final scam. This is the ultimate insider job. We touched on this in our guide to the dangers of monitor uptime, but the threat is so significant it warrants its own detailed analysis. There are two primary ways a monitor can go rogue. The first is by launching its own HYIP. The monitor admin will create a new program, often one that looks highly professional. They will then use their own trusted platform to give it a stellar review and a premium listing. They will tell their community that this is a 'special, internally managed' project and that it is the safest investment they have ever seen. The community, trusting the monitor they have relied on for years, will invest heavily. The monitor admin, in this case, has become the HYIP admin, and they will run the scam just like any other, but with the massive advantage of a huge, captive audience of believers. For a look at the importance of trust in financial systems, this report from the CFA Institute is a great resource: Trust in Finance.
The second method is a direct, high-level collusion with an external HYIP admin. A very large, successful HYIP might approach a major monitor and offer them a huge bribe—perhaps $50,000 or $100,000—in exchange for the monitor keeping their program's status as 'Paying' for a week after they have stopped paying the public. The monitor admin, perhaps nearing the end of their career as we speculated in The Lifecycle of a Monitor Admin, might decide to cash in their reputation for this one final, massive payday. This is the ultimate betrayal. The monitor becomes an active, willing partner in the final, most destructive phase of the scam, luring in thousands of investors who are relying on its false 'Paying' signal.
How can you possibly defend yourself against your most trusted source of information turning against you? The only defense is to never, ever place 100% of your trust in any single entity. This is why the strategy of using a diversified 'basket' of multiple, independent monitors is so critically important. If one of your trusted monitors starts behaving erratically or promoting one program with an unusual level of hype, and the other monitors are not doing the same, this is a major red flag. This is a sign that your 'trusted' monitor may be the one that is compromised. For a visual metaphor, imagine a trusted sheepdog that suddenly starts leading the flock towards a wolf. 
. The rogue monitor scam is rare, but it is so damaging that you must always be aware of the possibility. It is the final boss of HYIP risks. Your loyalty should not be to a monitor brand or an admin persona; your loyalty must be to your own process of critical thinking and cross-verification.
Author: Edward Langley, London-based investment strategist and contributor to several financial watchdog publications. He focuses on risk assessment and online financial security.
