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An investment scam is a deceptive practice. It tricks individuals into spending money on investments that are fake or not as profitable as promised. Scammers often use persuasive tactics. They promise high returns with low risk, which is a red flag. They may also use pressure tactics. They create a sense of urgency to invest immediately. This is a common strategy to prevent potential investors from doing thorough research. Another sign is unregistered investments. Scammers often promote these because they lack the oversight and regulation of legitimate investments. They may also use complex jargon. This is to confuse potential investors and make the scam seem more legitimate. Investment scams can take many forms. They include pyramid schemes, Ponzi schemes and pump-and-dump stock schemes.