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An investment scam is a fraudulent scheme. Scammers promise high returns with little risk. They may claim their strategy is "exclusive". It's designed to trick you into investing your money. The scammers often use glossy brochures and professional websites. They may even pretend to be a legitimate company. These tactics can make the scam seem convincing. Some scammers use high-pressure sales tactics. They create a sense of urgency. They'll tell you the "opportunity" will disappear if you don't invest right away. Another characteristic is the promise of consistent returns. The stock market is unpredictable. No legitimate investment can guarantee a certain return. In a Ponzi scheme, scammers use money from new investors to pay old ones. This gives the illusion of a successful investment. When new investors stop coming in, the scheme collapses.