A lot of scams have caused the fear of theft among people and they are regarding bitcoin and its trading a scam. People seem to be reluctant towards investing in bitcoins. How do we ensure them that bitcoins are not scam but the people are.

Nowaday, a solution that can eliminate scam is to make transactions through the website. That would significantly reduce fraud in transactions. And of course you have to pay a fee for these transactions ... besides there is still a rare risk that scam websites are fraudulent. You should use reputable websites.