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An investment scam is a fraudulent scheme where the scammer promises high returns with little to no risk. The scammer usually doesn't invest the money, instead, they use the funds from new investors to pay the returns to earlier investors. This is also known as a Ponzi scheme. These scams often use persuasive tactics. They may claim to have insider information or use high-pressure sales techniques. They might also use complex jargon to confuse potential investors. Investment scams can be hard to spot. Scammers often seem professional and trustworthy. They might have a slick website or impressive brochures. However, they often promise returns that are too good to be true. To protect yourself, always research before investing. Check if the company is registered and if the person is licensed to sell investments. Be wary of unsolicited investment offers. Remember, if it sounds too good to be true, it probably is.