Can a faulty turbo damage your engine?

Could you elaborate on the potential consequences of a faulty turbocharger on an engine? Is it merely a minor inconvenience or could it lead to more significant damage? What are the telltale signs that a turbocharger may be malfunctioning? Furthermore, how crucial is it to promptly address such issues to prevent further deterioration? And finally, what steps should be taken to ensure the turbocharger is operating efficiently to safeguard the long-term health of the engine?