I think they mostly don't know they're scams. That's part of why such people are called "unsophisticated investors" and why they are so frequently targeted by c

I think they mostly don't know they're scams. That's part of why such people are called "unsophisticated investors" and why they are so frequently targeted by conmen. If a substantial fraction of the US population believes the earth is flat or that astrology works or that aliens routinely visit our planet, it's also possible that a large fraction believes zero-risk/high-reward investments are real.