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Basics Beginner: Understanding and Avoiding Fraud and Scams

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1.
Which of the following job offers is most likely a work-at-home scam?
Choose wisely. There is only one correct answer.
Processing rebates for two hours a day for $500. Pay that is far above market rates is a classic sign of a scam.
2.
Scammers who target the elderly usually come across as _______.
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Likable. Scammers who target the elderly put on a positive face. Many elderly find it hard to turn down someone in need.
3.
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.
4.
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.
5.
Why might a money-transfer opportunity require that you sign a non-disclosure agreement?
Choose wisely. There is only one correct answer.
To prevent you from discussing the deal with other people. This is a common tactic in investment fraud.
6.
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.
7.
Romance scammers try to prey on our _______.
Choose wisely. There is only one correct answer.
Any of the above. A romance scammer takes advantage of our basic human goodness in order to take money from us.
8.
If you are unsure whether a broker is licensed, you should contact _______.
Choose wisely. There is only one correct answer.
Your state securities regulator. Brokers are registered at the state level.