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In an investment scam, fraudsters pose as legitimate businesspeople. They promise high-rate, risk-free returns to lure potential investors. The scam often sounds too good to be true. One method they use is called a "Ponzi scheme". The scammer pays returns to earlier investors with money invested by new investors. This cycle continues until the scammer runs out of new investors, or decides to disappear. Another scam is "pump and dump". Here, fraudsters inflate the price of a stock by spreading false or exaggerated claims. Once the stock price goes up, they sell their own shares and leave other investors with worthless stocks. Scammers may use cold calling, emails, or even glossy brochures to appear credible. They may also claim to have insider information, or use high-pressure sales tactics to rush you into investing.