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An investment scam is a scheme to trick people into giving their money with the promise of significant returns. These scams often seem like legitimate investments. But, behind the scenes, the scammer is using new investor's money to pay off earlier investors. One common type of investment scam is a Ponzi scheme. In this scam, the person managing the scheme promises high returns with little risk. These returns are paid by the money invested by new members. The scheme collapses when there aren't enough new investors to pay the old ones. Another type is advance fee fraud. Here, the scammer asks the victim to pay a fee before they can receive a larger sum. The victim pays the fee, but the promised return never comes. Remember, if an investment seems too good to be true, it probably is. Always do your research before making an investment.