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1.
How do pyramid schemes differ from legitimate sales opportunities?
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They offer payments to people only for recruiting new members. Legitimate sales opportunities involve selling actual products, while pyramid schemes do not involve paying people to sell actual products.
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.
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.
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.
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.
Which of the following job offers is most likely a work-at-home scam?
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Processing rebates for two hours a day for $500. Pay that is far above market rates is a classic sign of a scam.
7.
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.
8.
Why are so many frauds tailored to the elderly?
Choose wisely. There is only one correct answer.
All of the above. Though these do not describe all elderly, they describe enough that criminals target them.