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Investment scams are fraudulent schemes that promise high returns with little to no risk. Scammers use persuasive tactics to lure unsuspecting victims into investing their money. They often use fancy titles, impressive offices, or assert their legitimacy through fake testimonials. The most common types of investment scams are Ponzi schemes, pyramid schemes, and pump-and-dump schemes. Ponzi schemes involve investors being paid returns from their own money or the money paid by subsequent investors. Pyramid schemes are structured with an initial recruiter who is on top. This recruiter recruits a second who is required to invest a certain amount, which is paid to the initial recruiter. Pump-and-dump schemes involve artificially inflating the price of a stock through false and misleading positive statements. The scammer sells their cheaply purchased stock at a high price before the fraud is detected. Then the stock price plummets and investors lose their money. Remember, if it seems too good to be true, it probably is. Always do your research before making any investment decisions.