No one is completely immune to Ponzi pitfalls, but there are several suggestions you can follow in order to avoid them. If something sounds too good to be true then it probably is. Listen to your instincts and decline to invest in anything that offers an unusually high return. Maintain a healthy level of skepticism by doing your homework before entrusting anyone with your money. Finally, diversifying your investments will help keep you protected from Ponzi traps.