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An investment scam is a fraudulent business or scheme that convinces individuals to invest their money. These scams promise high returns with little to no risk. The scammer typically uses persuasive and manipulative tactics to lure potential investors. The most common types of investment scams include Ponzi schemes, pyramid schemes, and pump-and-dump scams. In a Ponzi scheme, returns are paid to earlier investors using money invested by newer investors. Pyramid schemes are similar, but they involve recruiting others to invest in the scheme. Pump-and-dump scams involve artificially inflating the price of a stock and then selling it when the price is high. Remember, if an investment sounds too good to be true, it probably is. Always do your research before investing your hard-earned money.