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1.
Why are pyramid schemes unsustainable by nature?
There are never enough participants to keep the pyramids growing. They are a fast way for scammers to defraud others.
2.
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.
3.
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.
4.
In the world of cryptocurrency, what is a private key?
A string of secret numbers used to sign transactions. A private key provides access to your cryptocurrency.
5.
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.
6.
It is possible to actually receive what you were promised in a money transfer scam.
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.
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.
8.
Which of the following descriptions of an investment is a telephone scammer most likely to use?
"Risk-free". Scammers often describe their investments as risk-free.