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An investment scam is a fraudulent scheme. Scammers offer victims high returns or dividends. These are not contingent on the usual market conditions. They often promise "guaranteed" profits. Scammers can employ a variety of tactics. They may pose as financial advisers. Some may even create fake companies. These are done to appear legitimate. Others use high-pressure sales tactics. They rush victims into making quick decisions. Scammers often target the elderly. They also prey on people with little previous investment experience. They entice them with promises of quick, high returns. Scammers know these individuals may not fully understand the investment process. The scams can take many forms. Pyramid schemes and Ponzi schemes are two common examples. They rely on taking new investors' money to pay earlier investors. This creates an illusion of profit. Remember, if an investment seems too good to be true, it probably is. It's important to research and seek advice before investing.