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  I nvestment fraud, also known as securities fraud, is a type of financial fraud that targets unsuspecting investors looking to make a profit in the stock market or other investment opportunities. In this blog, we will explore the various types of investment fraud and how to protect yourself from becoming a victim. Ponzi Schemes: One of the most common types of investment fraud is the Ponzi scheme. In a Ponzi scheme, an individual or company promises high returns on investments but pays those returns using the funds from new investors rather than actual profits. Ponzi schemes are illegal, and individuals or companies caught running them can face severe legal penalties.     Pyramid Schemes: Another type of investment fraud is a pyramid scheme. In a pyramid scheme, participants are promised large returns if they recruit new investors into the scheme. However, like Ponzi schemes, pyramid schemes are unsustainable and eventually collapse, leaving many investors with significant losses.