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An investment scam is a fraudulent scheme to steal money. It often promises high returns with little risk. The scammer uses persuasive tactics to convince people to invest their hard-earned money. They may show fake documents or use technical jargon to appear legitimate. These scams can take many forms. Ponzi schemes, pump and dump stocks, and advance fee frauds are common examples. In a Ponzi scheme, the scammer pays returns to old investors using money from new investors. Pump and dump scams involve artificially inflating the price of a stock and then selling it off when the price is high. In advance fee frauds, the scammer asks for a small upfront payment in return for a large future gain. It's crucial to be cautious when investing. Always research the investment and the person offering it. If it sounds too good to be true, it probably is.