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An investment scam is a false offer made by fraudsters. They use deceptive tactics to get you to part with your money. It's like a trap set to fool you into believing you can make huge returns on your investment. These scams come in many forms. One common form is the pyramid scheme. Here, the scammer asks you to invest money. They promise high returns. But your returns are actually paid from your own money or the money paid by subsequent investors. Another type is the Ponzi scheme. The scammers use money from new investors to pay previous investors. They give the illusion of a profitable business. In reality, they're just shuffling money around to appear legitimate. In the pump and dump scheme, scammers manipulate stock prices. They 'pump' up the price by encouraging others to buy. Then they 'dump' their own shares at the peak. This causes the price to plummet and other investors lose their money. Beware of these scams. Always do your research before investing. You should also be wary of offers that seem too good to be true. They often are.