Do you think people who invest in scam are unaware of what they are doing? Not so often. Have a look at threads of shitcoins such as ethereum cash, ethereum dark and the like: everybody knows it is just a pump and dump shitcoin but they are still willing to invest on it 'because my x10'.
Agreed. That's why I say that the point of regulation is not to eliminate scams. It would minimize it and keep the money clean.