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An investment scam is a deceptive practice. It's designed to trick individuals into putting their money into false investments. These scams often promise high returns with little risk. They prey on people's desire for quick wealth. Scammers use a variety of tactics to carry out these scams. They may claim to have insider information, use high-pressure sales tactics, or create a sense of urgency. They often present complex documents to confuse potential investors. One common characteristic of these scams is the promise of guaranteed returns. This is a clear red flag as all investments carry some level of risk. Another is the use of unregistered investments. Scammers may also use professional-looking websites to give the illusion of legitimacy.