Choose wisely. There is only one correct answer to each question.
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1.
Being paid to recruit others to a sales opportunity is sufficient to indicate that the opportunity is actually a pyramid scheme.
False. Though it's a part of a pyramid scheme by nature, being paid to recruit others is not by itself an indicator, as even legitimate firms may offer fees for recruitment.
2.
If you are unsure whether a broker is licensed, you should contact _______.
Your state securities regulator. Brokers are registered at the state level.
3.
Which of the following descriptions of a work-at-home job is most likely to be that of a scam?
An assurance that anyone can do it. Of the choices, this one is the most likely to be from a scam.
4.
When you send a cryptocurrency payment to another person, it is not reversible.
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.
5.
Why are so many frauds tailored to the elderly?
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?
They usually have more assets than younger people. Older people can be prime targets because of their assets.
7.
Why might a money-transfer opportunity require that you sign a non-disclosure agreement?
To prevent you from discussing the deal with other people. This is a common tactic in investment fraud.
8.
Which of the following descriptions of an investment is a telephone scammer most likely to use?
"Risk-free". Scammers often describe their investments as risk-free.