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An investment scam is a deceitful scheme. These schemes trick people into investing their money with false promises of high returns. Scammers can use various tactics to lure their victims. They may claim to have insider information or guaranteed returns. Common types of investment scams include Ponzi schemes and pyramid schemes. In a Ponzi scheme, the scammer pays returns to earlier investors using money invested by new investors. A pyramid scheme requires each investor to recruit more investors. The pyramid collapses when there are not enough new investors. Investment scams can happen to anyone. It's important to be cautious and do thorough research before investing your money. Don't be fooled by promises of quick profits or pressure to invest immediately. Always check the credentials of the person or company offering the investment. Remember, if it sounds too good to be true, it probably is.