Cinexmarket.com

An investment scam is a fraudulent business or scheme. It lures innocent people promising them high returns with minimal risk. These schemes often appear very legitimate, with detailed and professional-looking documents and websites. Scammers use various tactics to deceive people. One common method is the 'Pump and Dump'. They artificially inflate the price of a cheaply purchased stock. They then sell it at a high price before the price crashes. Investors are left with worthless shares. Another common scam is the Ponzi scheme. It relies on the money of new investors to pay returns to older investors. This creates an illusion of a profitable business. The scheme collapses when there are no more new investors. So, the key characteristics of these scams are high returns, low risk, consistent returns and unregistered investments. The best way to avoid these scams is to research thoroughly and be aware of the too-good-to-be-true offers.