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An investment scam is a deceptive practice. It's designed to trick people into investing their money with promises of high returns. These scams are often carried out by fraudsters who have no intention of using your money for legitimate investments. They could be in the form of Ponzi schemes, where money from new investors is used to pay returns to earlier investors. Or they could be pyramid schemes, where each participant recruits others to invest money. The recruiter then takes a cut of these investments. The hallmark of an investment scam is the promise of guaranteed returns with little to no risk. Remember, in the world of finance, higher returns always come with higher risk. If something sounds too good to be true, it probably is. Always do your homework before investing. Check the credentials of the person or company offering the investment. Be wary of unsolicited investment offers, especially those that pressure you to act quickly. Investment scams can lead to significant financial loss. Protect yourself by being informed and cautious.