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An investment scam is a scheme to trick people into giving away their money. It usually promises high returns with little to no risk. Scammers use persuasive and manipulative tactics to lure victims. They may use fancy terms or show fake certificates to appear legitimate. The most common type of investment scam is the Ponzi scheme. In this, the scammer pays returns to existing investors from the funds contributed by new investors. This creates an illusion of a profitable investment. But when new investors stop coming in, the scheme collapses. Another type is the pump and dump scam. Here, scammers inflate the price of a stock they own by spreading false information. Once the price goes up, they sell their shares at a profit. This causes the stock price to plummet, leaving other investors with a loss. Most investment scams happen online. They can appear as online ads, emails, or social media posts. They may even come from someone you trust. Always be cautious and do your research before investing your money. If something seems too good to be true, it probably is.