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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 older people common targets for romance scammers?
Choose wisely. There is only one correct answer.
They don't understand social media.
They are usually single.
They usually have more assets than younger people.
They aren't.
They usually have more assets than younger people. Older people can be prime targets because of their assets.
3.
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.
4.
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.
5.
In the world of cryptocurrency, what is a private key?
Choose wisely. There is only one correct answer.
A password
A string of secret numbers used to sign transactions
A secret word that a scammer sends you
None of the above
A string of secret numbers used to sign transactions. A private key provides access to your cryptocurrency.
6.
Which of the following descriptions of an investment is a telephone scammer most likely to use?
Choose wisely. There is only one correct answer.
"Risk-free"
"Earnings comparable to those of the market"
"The investment is available not just to you, but to anyone"
"Our address is ..."
"Risk-free". Scammers often describe their investments as risk-free.
7.
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.
8.
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.
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