And your alternative remedy is what exactly? And how does it make the victim whole again, beyond the tools currently available?
He already can sue for fraud in the current system, if he's so motivated, and recover losses.
For that matter, fraud itself is a crime. Whether or not the federal/state authorities pursue fraud cases energetically enough is a legit beef, but a government issue not a market one. There are well-crafted, legally tested statutes defining commercial fraud and markets have been subject to them for decades, centuries in certain cases.
So what type of market provides novel, effective remedies beyond the above that you'd recommend as a replacement?