Forextradefds.org

An investment scam is a deceptive practice. It's designed to trick people into giving their money to fraudsters. These scams promise high returns on investments. But, in reality, they don't invest your money at all. Instead, they use the money from new investors to pay off the old ones. This creates an illusion of a profitable business. A common type of investment scam is the Ponzi scheme. Here, the fraudster lures investors by promising them high returns with little risk. The scheme collapses when there are not enough new investors to pay the old ones. The fraudster then disappears with all the money. Another type of investment scam is the pump and dump scheme. Fraudsters inflate the price of a stock by spreading false and misleading information. Once the price is high enough, they sell their shares and the price crashes. Investors are left with worthless stocks. Be wary of investment opportunities that promise high returns with little risk. Always do your research before investing your money. If it sounds too good to be true, it probably is.