People are caught in a local maxima of thinking securities laws alone stop scams. Theranos, Madoff, Enron were all securities. There are 3 ways to stop scams.

People are caught in a local maxima of thinking securities laws alone stop scams. Theranos, Madoff, Enron were all securities. There are 3 ways to stop scams. 1. Better enforcement of the laws we have (doesn't work in harsher parts of the world.) It's usually post-facto and rarely recovers funds from those harmed. 2. Yell at people to be smarter. Your speech isn't funded as well as the scammers, and your pitch isn't as compelling, you often bring awareness to the scam and thus victims for free. 3. Out-compete the scams for money by marketing to their would-be victims things that aren't scams. Maybe that's an index fund, maybe it's a business opportunity, that can scale, and work everywhere. The only scalable solution to the scamming problem is similar marketing tactics for honest projects. Starve the scams of resources.