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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. Scammers use persuasive tactics to create a sense of urgency, pressuring victims to invest quickly. They may present fake testimonials and fabricated success stories to build trust. Scammers often use professional-looking websites and documents to appear legitimate. They target individuals through phone calls, emails, or social media. Many investment scams involve Ponzi schemes, where returns are paid to earlier investors using the capital from new investors. This cycle continues until the scam collapses, leaving most investors with significant losses.