Investment fraud occurs when individuals or companies deceive investors to gain their money under false pretenses. This can involve misleading information about potential returns, the legitimacy of the investment, or the financial health of a company. Common types of investment fraud include Ponzi schemes, where returns are paid to earlier investors using the capital from new investors, and pump-and-dump schemes, where the price of a stock is artificially inflated before being sold off. Victims of investment fraud often face significant financial losses and may struggle to recover their funds. Regulatory bodies like the Securities and Exchange Commission (SEC) work to protect investors by investigating fraudulent activities and enforcing laws against such practices. Awareness and education about the signs of investment fraud can help individuals make informed decisions and avoid falling victim to scams.