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Basics Beginner:
Understanding and Avoiding Fraud and Scams
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Choose wisely. There is only one correct answer to each question.
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1.
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.
2.
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.
3.
Why might a scammer go to great lengths to detail the intricate aspects of an "opportunity"?
Choose wisely. There is only one correct answer.
Scams are necessarily complex
The law requires it
Detail makes the opportunity look legitimate
To protect you as much as possible
Detail makes the opportunity look legitimate. The more detail, the more real it seems.
4.
Scammers who target the elderly usually come across as _______.
Choose wisely. There is only one correct answer.
Mean and vicious
Likable
Naive
Likable. Scammers who target the elderly put on a positive face. Many elderly find it hard to turn down someone in need.
5.
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.
6.
Telephone swindlers assume that people they call will want to be courteous to them on the phone.
Choose wisely. There is only one correct answer.
True
False
True. This courtesy is part of how they trap innocent people.
7.
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.
8.
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.
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