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Basics Beginner:
Understanding and Avoiding Fraud and Scams
Test your knowledge
Choose wisely. There is only one correct answer to each question.
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1.
Why might a work-at-home job in which you reship items you receive in the mail to others be a scam?
Choose wisely. There is only one correct answer.
The items might actually be stolen
The items might be worthless
No experience or skills are required
It's not actually a scam; it's legitimate
The items might actually be stolen. Reshipping is often a cover for sending stolen items.
2.
Why are pyramid schemes unsustainable by nature?
Choose wisely. There is only one correct answer.
There are never enough participants to keep the pyramids growing
Membership fees are too low
They pay too much in dividends to their members
They're not unsustainable; they can last a very long time, in fact
There are never enough participants to keep the pyramids growing. They are a fast way for scammers to defraud others.
3.
Why are so many frauds tailored to the elderly?
Choose wisely. There is only one correct answer.
Many elderly don't like to turn down people in need
Many elderly have a lot of money
Many elderly are reluctant to seek justice for crimes committed against them
All of the above
All of the above. Though these do not describe all elderly, they describe enough that criminals target them.
4.
Romance scammers try to prey on our _______.
Choose wisely. There is only one correct answer.
Compassion
Empathy
Need for connection
Any of the above
Any of the above. A romance scammer takes advantage of our basic human goodness in order to take money from us.
5.
Why might a money-transfer opportunity require that you sign a non-disclosure agreement?
Choose wisely. There is only one correct answer.
It is standard operating procedure when transferring money
To prevent you from discussing the deal with other people
For income tax purposes
The government requires non-disclosure agreements when you transfer money
To prevent you from discussing the deal with other people. This is a common tactic in investment fraud.
6.
Creating artificial demand for a stock and then selling it to make a quick profit is known as _______.
Choose wisely. There is only one correct answer.
Prime bank note fraud
A Ponzi scheme
Pump and dump
All of the above
Pump and dump. Pumping and dumping means creating artificial demand and then selling in order to gain from it.
7.
Telephone swindlers demand immediate compliance from their victims because _______.
Choose wisely. There is only one correct answer.
They don't want victims to take time to reflect on what's being offered
They don't want victims to seek advice from others
Both of the above
None of the above
Both of the above. Swindlers don't want their scams to be exposed.
8.
A blockchain is a transparent ledger of _______ transactions that anyone can view.
Choose wisely. There is only one correct answer.
Account balances
Passwords
Transactions
Transactions. Blockchains maintain a decentralized, secure record of transactions.
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