Investment fraud refers to deceptive practices that mislead individuals into investing their money in schemes that are either fake or misrepresented. This can include Ponzi schemes, where returns are paid to earlier investors using the capital from newer investors, rather than from profit earned by the operation of a legitimate business. Another common form of investment fraud is securities fraud, which involves false information about a company's financial health to manipulate stock prices. Victims often lose significant amounts of money, making it crucial for investors to conduct thorough research and be cautious of offers that seem too good to be true.