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Basics Beginner: Understanding and Avoiding Fraud and Scams

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1.
A blockchain is a transparent ledger of _______ transactions that anyone can view.
Choose wisely. There is only one correct answer.
Transactions. Blockchains maintain a decentralized, secure record of transactions.
2.
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.
3.
Why might a work-at-home job in which you reship items you receive in the mail to others be a scam?
Choose wisely. There is only one correct answer.
The items might actually be stolen. Reshipping is often a cover for sending stolen items.
4.
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.
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. They are a fast way for scammers to defraud others.
6.
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.
7.
Romance scammers try to prey on our _______.
Choose wisely. There is only one correct answer.
Any of the above. A romance scammer takes advantage of our basic human goodness in order to take money from us.
8.
Telephone swindlers demand immediate compliance from their victims because _______.
Choose wisely. There is only one correct answer.
Both of the above. Swindlers don't want their scams to be exposed.