An investment scam is a fraudulent scheme that promises high returns with little risk to investors. Scammers often use persuasive tactics to lure individuals into investing in fake opportunities, such as nonexistent companies or unrealistic projects. These scams can take various forms, including Ponzi schemes, where returns to earlier investors are paid using the capital from newer investors, rather than from profit. Victims of investment scams may lose significant amounts of money, as scammers often disappear once they have collected enough funds. It's essential for individuals to conduct thorough research and be cautious of offers that seem too good to be true, especially those involving cryptocurrencies, real estate, or high-yield bonds.