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An investment scam typically involves fraudsters promising high returns with little to no risk. They often claim that the opportunity is exclusive or time-sensitive, pressuring individuals to act quickly without thorough research. Scammers might present fake testimonials or endorsements to build credibility and trust. They use complex jargon to confuse potential investors, making the scheme appear legitimate and sophisticated. These scams frequently involve unregistered securities or non-existent products, making it difficult for victims to verify their legitimacy. Scammers may also employ affinity fraud, targeting specific groups or communities to exploit trust and shared connections. They often promise guaranteed returns, which is a red flag since no legitimate investment can assure profits without risk. Once they have collected enough money, the scammers disappear, leaving victims with significant financial losses.