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An investment scam is a fraudulent practice. It involves tricking individuals into parting with their money. Promises of high returns and low risk are common. Scammers often use persuasive tactics, promising quick and easy profits. Some scammers create fake companies. They may use professional-looking websites and documents. This is to make their operations appear legitimate. The aim is to convince potential investors that their money will be safe and grow. Often, these scams involve 'pump and dump' schemes. Here, fraudsters inflate the price of a low-value stock they own. They convince others to invest, causing the price to rise further. Once the price is high enough, they sell their shares and disappear. The stock price then crashes, leaving other investors with significant losses.