The Global Financial Crisis has seen investors withdraw funds from investment schemes around the world seeking the safe harbour of cash and bonds. As new investment dried up and investor redemptions were lodged in record numbers, a raft of Ponzi and pyramid-like schemes have been uncovered. Like the promises made by Charles Ponzi to New England residents in the 1920s, the US$65 billion swindle overseen by Bernard L. Madoff has shaken investor confidence. In the wake of the Madoff scandal, the number of Ponzi-type scams being identified around the world has increased at a concerning rate. This phenomenon, popularly termed 'Ponzimonium', represents another significant challenge to investors and regulators alike in the post-GFC environment. This paper considers some of the red flags that surround the Madoff scandal and those aspects of external control that failed to identify the fraud earlier and highlights the need for a proactive approach to fraud detection.