With the increasing sophistication of financial scams, it is more important than ever to be aware of how to avoid getting burned by the next Bernard Madoff. Madoff’s Ponzi scheme was one of the largest financial frauds in history, and it devastated the lives of thousands of investors. While it is impossible to guarantee that you will never be the victim of a financial scam, there are steps you can take to reduce your risk.
One of the most important things you can do is to educate yourself about financial red flags. These are signs that an investment opportunity may be fraudulent. Some common red flags include: