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Basics Beginner:
Understanding and Avoiding Fraud and Scams
Test your knowledge
Choose wisely. There is only one correct answer to each question.
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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.
Sewing purses at home for $10 apiece
Processing rebates for two hours a day for $500
Typing reports at 1 cent per word
A work-at-home job that requires a bachelor's degree
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 _______.
Choose wisely. There is only one correct answer.
Mean and vicious
Likable
Naive
Likable. Scammers who target the elderly put on a positive face. Many elderly find it hard to turn down someone in need.
3.
If you are unsure whether a broker is licensed, you should contact _______.
Choose wisely. There is only one correct answer.
Your state securities regulator
The FBI
The federal government
Any of the above
Your state securities regulator. Brokers are registered at the state level.
4.
In the world of cryptocurrency, what is a private key?
Choose wisely. There is only one correct answer.
A password
A string of secret numbers used to sign transactions
A secret word that a scammer sends you
None of the above
A string of secret numbers used to sign transactions. A private key provides access to your cryptocurrency.
5.
Why are pyramid schemes unsustainable by nature?
Choose wisely. There is only one correct answer.
There are never enough participants to keep the pyramids growing
Membership fees are too low
They pay too much in dividends to their members
They're not unsustainable; they can last a very long time, in fact
There are never enough participants to keep the pyramids growing. They are a fast way for scammers to defraud others.
6.
Why are older people common targets for romance scammers?
Choose wisely. There is only one correct answer.
They don't understand social media.
They are usually single.
They usually have more assets than younger people.
They aren't.
They usually have more assets than younger people. Older people can be prime targets because of their assets.
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
False
True. This courtesy is part of how they trap innocent people.
8.
It is possible to actually receive what you were promised in a money transfer scam.
Choose wisely. There is only one correct answer.
True
False
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.
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DONE