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An investment scam is a deceptive practice. It lures people into investing their money with promises of high returns. These scams often involve unregistered securities. They may also be unlicensed individuals conducting the schemes. These fraudulent plans often promise quick wealth. The perpetrators use sales tactics that can be aggressive or use pressure. They may claim that the "opportunity" is only available for a short time. In a Ponzi or pyramid scheme, investment returns are paid with money taken from new investors. The scam falls apart when not enough new investors are found. In pump and dump schemes, fraudsters 'pump' up the price of a stock by spreading rumors. Then they 'dump' their shares at the inflated price. These scams are designed to look and sound legitimate which makes them harder to spot. Remember, if an investment seems too good to be true, it probably is.