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Basics Beginner: Understanding and Avoiding Fraud and Scams

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1.
Why might a scammer go to great lengths to detail the intricate aspects of an "opportunity"?
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Detail makes the opportunity look legitimate. The more detail, the more real it seems.
2.
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.
3.
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.
4.
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.
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.
A blockchain is a transparent ledger of _______ transactions that anyone can view.
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Transactions. Blockchains maintain a decentralized, secure record of transactions.
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.
Creating artificial demand for a stock and then selling it to make a quick profit is known as _______.
Choose wisely. There is only one correct answer.
Pump and dump. Pumping and dumping means creating artificial demand and then selling in order to gain from it.