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Basics Beginner: Understanding and Avoiding Fraud and Scams

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1.
In the world of cryptocurrency, what is a private key?
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A string of secret numbers used to sign transactions. A private key provides access to your cryptocurrency.
2.
If you are unsure whether a broker is licensed, you should contact _______.
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Your state securities regulator. Brokers are registered at the state level.
3.
Why might a money-transfer opportunity require that you sign a non-disclosure agreement?
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To prevent you from discussing the deal with other people. This is a common tactic in investment fraud.
4.
Why are older people common targets for romance scammers?
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They usually have more assets than younger people. Older people can be prime targets because of their assets.
5.
How do pyramid schemes differ from legitimate sales opportunities?
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They offer payments to people only for recruiting new members. Legitimate sales opportunities involve selling actual products, while pyramid schemes do not involve paying people to sell actual products.
6.
Telephone swindlers demand immediate compliance from their victims because _______.
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Both of the above. Swindlers don't want their scams to be exposed.
7.
About how many seniors have been victimized by elder financial fraud?
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One in 5. About one in 5 Americans over 65 have been defrauded financially.
8.
Which of the following descriptions of a work-at-home job is most likely to be that of a scam?
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An assurance that anyone can do it. Of the choices, this one is the most likely to be from a scam.