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An investment scam is a scheme to defraud investors. Scammers promise high returns with little risk. They create a sense of urgency, pressuring you to invest immediately. These scams often involve unregistered securities. Scammers may use complex jargon to confuse you. They might also offer exclusive opportunities. A common tactic is the "Ponzi" scheme. Here, returns for older investors are paid by new investors. This creates an illusion of a profitable investment. When new investors stop coming in, the scheme collapses. Scammers may also manipulate stock prices. This is known as a "pump and dump" scam. They inflate a stock's price, then sell their shares before the price crashes. Remember, if an investment sounds too good to be true, it probably is. Don't let greed cloud your judgment.