What should be done to ensure large scale fraud such as Ponzi schemes do not happen in the future?

 

There should be intense scrutinizing of the unusual high returns to ensure that the public is saved from potential fraudulent activities and falling into a 'financial trap'

Step-by-step explanation

In this context, such schemes have taken advantage of the trust and curiosity of the public, and have made many fall under financial stress and constraints

Such schemes should be scrutinized with regards to the potential high returns they promise, and the conditions and terms should be evaluated to ensure they are legal and no hidden negative costs are involved

secondly, more education and awareness regarding financial management and planning should be given to the public, as this ensures that there is a proper understanding of how to avoid such schemes

furthermore, there should be certification of only those firms which meet the desired criterial set out by the governing bodies, and continuous evaluation of their activities should be done from time to time