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Basics Beginner: Understanding and Avoiding Fraud and Scams

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1.
Telephone swindlers demand immediate compliance from their victims because _______.
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Both of the above. Swindlers don't want their scams to be exposed.
2.
About how many seniors have been victimized by elder financial fraud?
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One in 5. About one in 5 Americans over 65 have been defrauded financially.
3.
The perpetrators of Ponzi schemes typically pay money to some of the early investors because _______.
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They want to portray the investment as legitimate. This is often the perfect way to keep the later investors faithful.
4.
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.
5.
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.
6.
Why might a scammer go to great lengths to detail the intricate aspects of an "opportunity"?
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Detail makes the opportunity look legitimate. The more detail, the more real it seems.
7.
Which of the following descriptions of a work-at-home job is most likely to be that of a scam?
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An assurance that anyone can do it. Of the choices, this one is the most likely to be from a scam.
8.
What does a romance scammer usually try to get first, before coming after your money?
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A connection with you. Romance scams require that the victim develop a feeling of connection with the criminal; this makes it harder to refuse him or her.