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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.
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.
2.
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.
3.
A blockchain is a transparent ledger of _______ transactions that anyone can view.
Choose wisely. There is only one correct answer.
Account balances
Passwords
Transactions
Transactions. Blockchains maintain a decentralized, secure record of transactions.
4.
Romance scammers try to prey on our _______.
Choose wisely. There is only one correct answer.
Compassion
Empathy
Need for connection
Any of the above
Any of the above. A romance scammer takes advantage of our basic human goodness in order to take money from us.
5.
The perpetrators of Ponzi schemes typically pay money to some of the early investors because _______.
Choose wisely. There is only one correct answer.
They want to portray the investment as legitimate
They prefer to act in the best interests of investors
They want the investment to become legitimate as time goes on
They want to portray the investment as legitimate. This is often the perfect way to keep the later investors faithful.
6.
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
The items might be worthless
No experience or skills are required
It's not actually a scam; it's legitimate
The items might actually be stolen. Reshipping is often a cover for sending stolen items.
7.
Why are so many frauds tailored to the elderly?
Choose wisely. There is only one correct answer.
Many elderly don't like to turn down people in need
Many elderly have a lot of money
Many elderly are reluctant to seek justice for crimes committed against them
All of the above
All of the above. Though these do not describe all elderly, they describe enough that criminals target them.
8.
Why might a scammer go to great lengths to detail the intricate aspects of an "opportunity"?
Choose wisely. There is only one correct answer.
Scams are necessarily complex
The law requires it
Detail makes the opportunity look legitimate
To protect you as much as possible
Detail makes the opportunity look legitimate. The more detail, the more real it seems.
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DONE