Choose wisely. There is only one correct answer to each question.
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1.
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.
2.
The perpetrators of Ponzi schemes typically pay money to some of the early investors because _______.
They want to portray the investment as legitimate. This is often the perfect way to keep the later investors faithful.
3.
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.
4.
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.
5.
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.
6.
Which of the following job offers is most likely a work-at-home scam?
Processing rebates for two hours a day for $500. Pay that is far above market rates is a classic sign of a scam.
7.
Scammers who target the elderly usually come across as _______.
Likable. Scammers who target the elderly put on a positive face. Many elderly find it hard to turn down someone in need.
8.
What does a romance scammer usually try to get first, before coming after your money?
A connection with you. Romance scams require that the victim develop a feeling of connection with the criminal; this makes it harder to refuse him or her.