How could the Bernard Madoff scandal have been prevented?

The Bernard Madoff scandal could have been prevented through stricter regulatory oversight and more rigorous auditing practices by the Securities and Exchange Commission (SEC). Enhanced scrutiny of Madoff's operations, especially given the red flags raised by whistleblowers and inconsistent returns, could have exposed the Ponzi scheme earlier. Additionally, fostering a culture of transparency and accountability within the financial industry, along with improved investor education, could have deterred reliance on secretive investment strategies. Regular verification of funds and third-party custodianship might have also reduced the risk of such fraudulent activities.