Is there a way to predict and avoid financial frauds, such as stock market scams, before they occur?

Yes

1. If you are told you can get rich without any training or education then it is a scam.
2. If you are told you can mortgage your home and invest and become a millionaire it is a scam.
3. If you are told you can trade stocks like you gamble at a casino, then it is a scam.
4. If a promotion sounds too good to be true, it is a scam.
5. If you are told to give someone money and they will make you a millionaire it is a scam.
6. If it is a Ponzi scheme it is a scam, if a Guru it is a scam, often famous people are scamming too.

Mostly common sense is what you need to consider. Everyone plays the lottery or goes to casinos. These are GAMES and you know you are spending money to play a game.

The stock market is NOT a game. It is the underpinnings of our massive economy. It is why there are jobs; it is why someone with a brilliant idea can build something in their home or garage and eventually over 20 years build it into a giant global corporation; it is why we have a middle class; it is why the average American can retire and not work all of their life; it is why we have college grans and sponsors for youngsters to have that opportunity; it is why the American dream is still attainable IF you work at it.