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An investment scam is a deceptive practice. It tricks people into investing their money with promises of high returns. These scams are often presented as unique opportunities. They may claim to have insider information or use complex financial jargon to appear legitimate. In reality, the money invested is not used for the stated purpose. Instead, it's often used to pay off earlier investors or pocketed by the scammer. This is known as a Ponzi scheme, one of the most common types of investment scams. Investment scams can take many forms. They can be online, through cold calls, or even in person. Scammers are skilled at manipulation and persuasion. They prey on people's desire to improve their financial situation. It's important to be cautious when considering an investment. Always research the opportunity and the person or company offering it. If it sounds too good to be true, it probably is.