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Basics Beginner: Understanding and Avoiding Fraud and Scams

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1.
In the world of cryptocurrency, what is a private key?
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A string of secret numbers used to sign transactions. A private key provides access to your cryptocurrency.
2.
Telephone swindlers assume that people they call will want to be courteous to them on the phone.
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True. This courtesy is part of how they trap innocent people.
3.
Why are pyramid schemes unsustainable by nature?
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There are never enough participants to keep the pyramids growing. They are a fast way for scammers to defraud others.
4.
It is possible to actually receive what you were promised in a money transfer scam.
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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.
5.
Why are so many frauds tailored to the elderly?
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All of the above. Though these do not describe all elderly, they describe enough that criminals target them.
6.
Why are older people common targets for romance scammers?
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They usually have more assets than younger people. Older people can be prime targets because of their assets.
7.
If you are unsure whether a broker is licensed, you should contact _______.
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Your state securities regulator. Brokers are registered at the state level.
8.
Why might a work-at-home job in which you reship items you receive in the mail to others be a scam?
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The items might actually be stolen. Reshipping is often a cover for sending stolen items.