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An investment scam is a fraudulent scheme. It's designed to deceive people into investing their money with the promise of high returns. Scammers often use persuasive tactics. They may claim their opportunity is limited or exclusive. They often create a sense of urgency. This is to pressure you into investing before you have time to do research. Scammers may also use complex jargon. This is to confuse potential investors and make the scam seem legitimate. Sometimes, they even pay initial returns to early investors using funds obtained from later investors. This is known as a "Ponzi" scheme. These initial successes can attract more victims to the scam. The scam eventually collapses when the scammer can no longer sustain the payouts or decides to disappear with the funds. The promises made by scammers are usually too good to be true. High returns with little or no risk are a common sign of an investment scam. Remember, if it sounds too good to be true, it probably is.