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An investment scam is a fraudulent business or scheme that convinces individuals to invest their money based on false promises. These scams often promise high returns with little to no risk. The scammer typically uses persuasive and aggressive tactics to lure in potential investors. One common type of investment scam is a Ponzi scheme. In this scheme, the scammer uses the money from new investors to pay returns to earlier investors. This creates an illusion of a profitable investment. But, the scheme collapses when there aren't enough new investors to pay the old ones. Another type of scam is pump and dump. Here, fraudsters inflate the price of a low-cost stock by spreading false or misleading information. Once the stock price has been pumped up, they sell their shares at this high price. Then, the stock price crashes, leaving other investors with significant losses. Always be wary of investments that sound too good to be true. Do your own research and seek advice from trusted financial advisors before making any investment decisions.