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An investment scam is a deceptive practice. It aims to defraud investors of their money. Scammers often use persuasive tactics. They promise high returns with little to no risk. These scams can take many forms. Ponzi schemes and pyramid schemes are common examples. In a Ponzi scheme, funds from new investors are used to pay returns to earlier investors. Pyramid schemes involve recruiting investors to contribute money. They promise that they can make money by recruiting further investors. Scammers use sophisticated methods. They may create fake companies or use complex financial jargon. This is designed to confuse and convince potential victims. The goal is to make the scam seem legitimate. Remember, if an investment seems too good to be true, it probably is. Always do your research before investing your money.