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An investment scam is a deceptive practice designed to attract investors. The scammer promises high returns and low risk to lure people into investing their money. These promises are often too good to be true. These scams can take many forms. Some involve the sale of fake investments. Others involve the manipulation of stock prices. They all involve some form of deceit and they all aim to take money from unsuspecting individuals. One common type of scam is the Ponzi scheme. This involves taking money from new investors to pay old ones creating the illusion of profit. When new investments stop, the scheme collapses and most investors lose their money. Always be wary of investments that promise high returns with no risk. If it sounds too good to be true, it probably is. Do your homework and seek advice from trusted financial advisors before making any investment decisions.