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An investment scam is a deceitful operation. Scammers lure victims with the promise of high returns or dividends. They often guarantee profits with little or no risk. These scams can take many forms. Ponzi schemes and pyramid schemes are common examples. In a Ponzi scheme, returns for older investors are paid through the money invested by new investors. Scammers use various tactics to appear legitimate. They may use professional-looking websites, and fake testimonials. They often pressure potential investors to make quick decisions. The promises made in an investment scam are typically too good to be true. If an investment seems suspicious, it's important to research thoroughly before investing.