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An investment scam is a fraudulent business scheme. It promises high returns with little risk to investors. The scammer usually doesn't invest the money. Instead, they use the money from new investors to pay returns to earlier investors. These scams often use high-pressure sales tactics. They may claim the opportunity is only available for a short time. Or they may say the investment is exclusive, available only to wealthy or privileged individuals. Investment scams can take many forms. Some examples include pyramid schemes, Ponzi schemes, and pump-and-dump stock schemes. In a pyramid scheme, new investors pay money to earlier investors. A Ponzi scheme is similar, but the scammer collects all the money and distributes the returns. In a pump-and-dump scheme, scammers inflate a stock's price and then sell their shares before the price crashes. Always be cautious when considering an investment. If it sounds too good to be true, it probably is. Always do your research before investing your hard-earned money.