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Basics Beginner: Understanding and Avoiding Fraud and Scams

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1.
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.
2.
Creating artificial demand for a stock and then selling it to make a quick profit is known as _______.
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Pump and dump. Pumping and dumping means creating artificial demand and then selling in order to gain from it.
3.
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.
4.
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.
5.
Which of the following descriptions of an investment is a telephone scammer most likely to use?
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"Risk-free". Scammers often describe their investments as risk-free.
6.
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.
7.
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.
8.
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.