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An investment scam is a fraudulent practice that involves promising an investor a high return on their investment without any risk. The scammer uses various tactics to convince the investor that the investment opportunity is legitimate. They might show fake documents or provide false information about the potential return on investment. One common type of investment scam is the Ponzi scheme. Here, the scammer pays returns to existing investors from funds provided by new investors. This creates an illusion of a profitable investment until the scheme collapses when there are no more new investors. Another type is the pump and dump scheme. In this scam, fraudsters inflate the price of a stock, then sell off their shares, causing the value to plummet. Unsuspecting investors are left with worthless stocks. Investment scams can be hard to spot. Therefore, its essential to do your own research before investing. Always be skeptical of investments that sound too good to be true.