Hedge fund fraud is more common in the United States than it is in Europe because nearly anyone can take a shot at becoming a hedge fund manager as long as they have a Bloomberg terminal and money to start with, CNN/Money reports.

The easiness of entering the industry is what makes it so vulnerable to fraud, something that is almost non-existent in Europe, according to the Alternative Investment Management Association of London.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.