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An investment scam revolves around the act of fraudulently obtaining money from investors. The swindler convinces folks to make investments promising high returns with little to no risk. The truth is, they are using this money for personal gain. Typically, the scam artist might claim they have insider information or a secret investment strategy. They will use high-pressure tactics to push you into investing your hard earned money. Once you hand over your cash, they disappear. Ponzi schemes are one of the most common types of investment scams. In this scheme, returns for older investors are paid by the funds of new investors. This system collapses when there aren't enough new investors to pay the old ones. Always remember, if an investment sounds too good to be true, it probably is. To avoid falling victim, do thorough research and seek advice from trusted financial advisors before investing your money.