How can we prevent scams ?

In the recent past there has been a lot of scams in Tamil Nadu. The gold quest scheme is based on the pyramid scheme which is banned in a lot of countries. Most of the people who were duped are simpletons, people who are greedy and people who are in desperate situations. How can the authorities protect these people ?

When an enterprise is established, they need to obtain a license from the government. As part of the documentation, a description of the company scope should be submitted. This should be displayed at the office and the company should not operate in anything outside that scope. Public should be educated of this documentation. The licensing officer should be held accountable for the licenses issued by him.

This will help the govt. weed out the setup of bogus companies . The public can request this document and make sure the offered scheme/service is authentic.