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Investment scams are fraudulent business schemes perpetuated by persons who pretend to be financial advisors. They exploit individuals' desire for quick and high returns on their investments. Typically, these scammers promise guaranteed returns and little to no risk. This is a huge red flag as all investments entail some level of risk. The scammers often use high-pressure sales tactics. They urge potential investors to invest immediately, claiming the opportunity is limited. By creating a sense of urgency, they aim at making victims act without proper research or consultation. Another common characteristic is the promise of exotic or 'secret' investments. These may include, for example, overseas properties, precious metals or new technologies. Often, these opportunities aren't real or are vastly overhyped. In some cases, scammers may even pay returns to initial investors using funds obtained from later investors. This is a classic sign of a Ponzi scheme, a type of investment scam. Remember, if an investment opportunity sounds too good to be true, it probably is a scam.