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.

who do you mean here? people who invest in bitcoin or those who accuse bitcoin of being a fraud?
indeed a lot of bitcoin fraud but I don't think that needs to be worried because it is only a matter of our own policy
scam coins are a lot but hopefully this fraud will end soon.