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Basics Beginner: Understanding and Avoiding Fraud and Scams

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1.
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.
2.
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.
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.
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.
5.
Why are pyramid schemes unsustainable by nature?
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There are never enough participants to keep the pyramids growing. They are a fast way for scammers to defraud others.
6.
It is possible to actually receive what you were promised in a money transfer scam.
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True. Though rare, it can happen, but you are usually being used to cover another person's illegal activity, and you can get in trouble for it.
7.
About how many seniors have been victimized by elder financial fraud?
Choose wisely. There is only one correct answer.
One in 5. About one in 5 Americans over 60 have been defrauded financially.
8.
When you send a cryptocurrency payment to another person, it is not reversible.
Choose wisely. There is only one correct answer.
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.