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An investment scam typically involves fraudsters posing as legitimate investment advisors. They promise high returns and low risk on investments, which are often not true. Scammers use high-pressure sales tactics to convince potential victims to invest quickly. They make it seem like the opportunity is limited, creating a sense of urgency. Often, they'll use complex jargon, or provide professionally-looking brochures and websites. This gives the illusion of credibility. The investments scammers peddle are usually unregistered, making it hard for investors to get information. They include exotic or non-traditional assets like precious metals, real estate, cryptocurrencies, and foreign currency trading. Ponzi or pyramid schemes are a common type of investment scam. These involve using money from newer investors to pay older ones. Sometimes, the scam may take on a more personal tone. The scammer may befriend the victim before pitching the bogus investment opportunity. This is a tactic called affinity fraud. It is designed to exploit the trust in personal relationships.