You have confused cause and effect, the cause of the trading industry being lined with fraud is due to lack of regulation and goverment controls on what sort of extraordinary BS claims of profitability vendors can sell to the unprotetected public. The effect of industry-wide fraud, not the cause, is shown by deceived consumers thinking they can become profitable by following vendors' unverifiable and unrealistic claims of profitability.
So, in other words you expect the taxpayer to pay for someone's greed and stupidity? Over my dead body, pal!
Everyone can get scammed once or twice. But smart people use it as a learning experience and move on, while stupid ones develop an unhealthy habit of seeking a savior among ever more sophisticated con men. Smart people also don't pay thousands of dollars first, but a few hundred at most. This way they can minimize their losses. But many assume that the more expensive something is the better it must be. Well, not really. This is not true in general even in a normal marketplace let alone as full of frauds as the trading marketplace.
The con men exist and prosper because the consumers refuse to educate themselves and are greedy. In the absence of widespread stupidity and greed, the frauds would not find it profitable to operate - yet many keep doing this for years if not decades.