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Investment scams are a type of fraud where the scammer promises high-return, low-risk investments to attract victims. They often use aggressive sales tactics, make false claims about the potential for profits, and greatly understate the risks. One common type of investment scam is the "Ponzi scheme". Here, scammers use money from new investors to pay returns to earlier investors. They give the illusion of a successful investment, luring more people into the scheme. Another common type is the "pump and dump" scheme. Scammers hype up a certain stock to attract investors and inflate the price. Once the price is high enough, they sell off their shares and the price drops drastically. The investors are left with worthless stock. High-pressure sales tactics, unsolicited investment offers, and promises of guaranteed returns are all red flags of an investment scam. Always do your research before investing.