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Basics Beginner: Understanding and Avoiding Fraud and Scams

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1.
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.
An assurance that anyone can do it. Of the choices, this one is the most likely to be from a scam.
2.
Why are older people common targets for romance scammers?
Choose wisely. There is only one correct answer.
They usually have more assets than younger people. Older people can be prime targets because of their assets.
3.
It is possible to actually receive what you were promised in a money transfer scam.
Choose wisely. There is only one correct answer.
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.
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.
5.
How do pyramid schemes differ from legitimate sales opportunities?
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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.
6.
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.
7.
Telephone swindlers assume that people they call will want to be courteous to them on the phone.
Choose wisely. There is only one correct answer.
True. This courtesy is part of how they trap innocent people.
8.
When you send a cryptocurrency payment to another person, it is not reversible.
Choose wisely. There is only one correct answer.
True. Crypto payments are not reversible; to get one back, the other person would have to send it to you, which is not likely to happen if the person had defrauded you.