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Basics Beginner: Understanding and Avoiding Fraud and Scams

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1.
About how many seniors have been victimized by elder financial fraud?
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One in 5. About one in 5 Americans over 60 have been defrauded financially.
2.
When you send a cryptocurrency payment to another person, it is not reversible.
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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.
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.
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.
5.
Romance scammers try to prey on our _______.
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Any of the above. A romance scammer takes advantage of our basic human goodness in order to take money from us.
6.
Telephone swindlers assume that people they call will want to be courteous to them on the phone.
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True. This courtesy is part of how they trap innocent people.
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.