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An investment scam is a deceptive practice that targets individuals with the promise of high returns and little risk. Scammers use various tactics such as aggressive sales tactics, unsolicited phone calls, or emails. They trick people into investing their hard-earned money into fraudulent schemes. These scams can take many forms. Ponzi schemes, for example, rely on money from new investors to pay returns to earlier investors. Pyramid schemes, on the other hand, require each participant to recruit others to invest money. The initial recruiters earn their returns from these new recruits. In another type, the boiler room scam, high-pressure salespeople try to convince investors to buy stocks that the fraudsters claim are about to increase in value. In reality, these stocks are worthless or non-existent. The primary sign of an investment scam is the promise of guaranteed, high returns with no risk. All investments come with some degree of risk. If it sounds too good to be true, it probably is. Knowing about these scams can help you avoid becoming a victim. Always do your research, ask questions, and seek advice from trusted sources before investing your money.