Home
>
Basics
>
Beginner
Basics Beginner:
Understanding and Avoiding Fraud and Scams
Test your knowledge
Choose wisely. There is only one correct answer to each question.
0%
Keep studying!
Review your answers below to learn more.
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.
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.
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.
4.
Which of the following descriptions of a work-at-home job is most likely to be that of a scam?
Choose wisely. There is only one correct answer.
A long list of all the companies it serves
An assurance that anyone can do it
It pays twice minimum wage
Its physical address, phone number, and Website
An assurance that anyone can do it. Of the choices, this one is the most likely to be from a scam.
5.
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.
6.
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.
7.
The perpetrators of Ponzi schemes typically pay money to some of the early investors because _______.
Choose wisely. There is only one correct answer.
They want to portray the investment as legitimate
They prefer to act in the best interests of investors
They want the investment to become legitimate as time goes on
They want to portray the investment as legitimate. This is often the perfect way to keep the later investors faithful.
8.
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.
Submit
DONE