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1.
How do pyramid schemes differ from legitimate sales opportunities?
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.
What does a romance scammer usually try to get first, before coming after your money?
A connection with you. Romance scams require that the victim develop a feeling of connection with the criminal; this makes it harder to refuse him or her.
3.
The perpetrators of Ponzi schemes typically pay money to some of the early investors because _______.
They want to portray the investment as legitimate. This is often the perfect way to keep the later investors faithful.
4.
A blockchain is a transparent ledger of _______ transactions that anyone can view.
Transactions. Blockchains maintain a decentralized, secure record of transactions.
5.
Telephone swindlers assume that people they call will want to be courteous to them on the phone.
True. This courtesy is part of how they trap innocent people.
6.
About how many seniors have been victimized by elder financial fraud?
One in 5. About one in 5 Americans over 60 have been defrauded financially.
7.
Why might a work-at-home job in which you reship items you receive in the mail to others be a scam?
The items might actually be stolen. Reshipping is often a cover for sending stolen items.
8.
Why might a money-transfer opportunity require that you sign a non-disclosure agreement?
To prevent you from discussing the deal with other people. This is a common tactic in investment fraud.