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1.
The perpetrators of Ponzi schemes typically pay money to some of the early investors because _______.
They want to portray the investment as legitimate. This is often the perfect way to keep the later investors faithful.
2.
How do pyramid schemes differ from legitimate sales opportunities?
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.
3.
It is possible to actually receive what you were promised in a money transfer scam.
True. Though rare, it can happen, but you are usually being used to cover another person's illegal activity, and you can get in trouble for it.
4.
Why might a work-at-home job in which you reship items you receive in the mail to others be a scam?
The items might actually be stolen. Reshipping is often a cover for sending stolen items.
5.
Why are so many frauds tailored to the elderly?
All of the above. Though these do not describe all elderly, they describe enough that criminals target them.
6.
Telephone swindlers demand immediate compliance from their victims because _______.
Both of the above. Swindlers don't want their scams to be exposed.
7.
A blockchain is a transparent ledger of _______ transactions that anyone can view.
Transactions. Blockchains maintain a decentralized, secure record of transactions.
8.
Why are older people common targets for romance scammers?
They usually have more assets than younger people. Older people can be prime targets because of their assets.