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An investment scam is a deceptive practice. It aims to attract investors by promising high returns with minimal risk. The scammer may claim to have a unique strategy or inside information to make the offer appear legitimate. These scams can take many forms. Some common are Ponzi schemes and pump-and-dump operations. In a Ponzi scheme, the scammer uses funds from new investors to pay previous ones. This gives the illusion of a profitable investment. In a pump-and-dump scheme, scammers inflate the price of a stock. They spread false or misleading information to attract investors. Once the price spikes, they sell their shares at the inflated price and the stock price plummets. This leaves the deceived investors with worthless shares. Sad to say, many people fall for these scams. Why? Scammers exploit the desire for quick and easy profits. They can appear professional and persuasive, making their false claims seem plausible.