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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 older people common targets for romance scammers?
Choose wisely. There is only one correct answer.
They don't understand social media.
They are usually single.
They usually have more assets than younger people.
They aren't.
They usually have more assets than younger people. Older people can be prime targets because of their assets.
2.
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.
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
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.
4.
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.
5.
Why might a money-transfer opportunity require that you sign a non-disclosure agreement?
Choose wisely. There is only one correct answer.
It is standard operating procedure when transferring money
To prevent you from discussing the deal with other people
For income tax purposes
The government requires non-disclosure agreements when you transfer money
To prevent you from discussing the deal with other people. This is a common tactic in investment fraud.
6.
Telephone swindlers demand immediate compliance from their victims because _______.
Choose wisely. There is only one correct answer.
They don't want victims to take time to reflect on what's being offered
They don't want victims to seek advice from others
Both of the above
None of the above
Both of the above. Swindlers don't want their scams to be exposed.
7.
About how many seniors have been victimized by elder financial fraud?
Choose wisely. There is only one correct answer.
One in 5
One in 10
One in 20
About one in 100
One in 5. About one in 5 Americans over 60 have been defrauded financially.
8.
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.
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