Are fake crypto exchanges a scam?

Could you elaborate on the potential risks associated with fake cryptocurrency exchanges? Are they merely platforms designed to defraud unsuspecting investors? What kind of scams do they typically employ? How can investors protect themselves from such fraudulent activities? Do regulators have any measures to combat the proliferation of these fake exchanges? Furthermore, are there any red flags that investors should be aware of before engaging with a new crypto exchange? Understanding the intricacies of this issue would greatly assist investors in navigating the complex and often volatile world of cryptocurrency trading.