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An investment scam is a fraudulent scheme where scammers promise high returns with little or no risk. They often claim to have insider information or exclusive opportunities. These promises are designed to lure people into investing their money quickly. Scammers use persuasive tactics to build trust. They may create fake websites or use fake testimonials. They often pressure victims to act immediately, creating a sense of urgency. Scammers might also offer guaranteed returns, which is a red flag. They may use complex jargon to confuse potential investors. Victims are often encouraged to invest more money over time. Many investment scams involve Ponzi schemes, where returns for older investors are paid from new investors' funds. This creates an illusion of a profitable investment.