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An investment scam is a way to trick people out of their money. It usually involves a person or company making false promises. They might offer high returns with little to no risk. Oftentimes, these schemes are too good to be true. The scammer may use high-pressure sales tactics. They rush you to invest before you have time to think it through or do research. Other times they use complex jargon to confuse the victim. Ponzi schemes are a common type of investment scam. Here, the scammer uses the money from new investors to pay previous investors. This creates the illusion of a successful investment. In reality, no real investment exists. Always be cautious when investing. Never invest in something you don't understand and always verify information. This can prevent you from falling victim to an investment scam.