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An investment scam is a fraudulent business or scheme that convinces investors to make financial decisions based on false information. These scams can take many forms, and they are designed to look as legitimate as possible to catch unsuspecting victims. Commonly, the scammer promises high returns with little risk. They might use complex jargon and impressive titles to appear knowledgeable and trustworthy. The scammer may also pressure you to invest quickly, saying this is a limited-time offer. Investment scams often involve unregistered securities – investments that haven’t been registered with the Securities and Exchange Commission (SEC). Unregistered doesn't always mean fraudulent, but it can be a red flag. To avoid these scams, always do your own research before investing. Check if the security is registered and if the person selling it is licensed. Don't fall for high pressure tactics or too-good-to-be-true promises. Remember, if it sounds too good to be true, it probably is.