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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.
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.
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.
Why are older people common targets for romance scammers?
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They usually have more assets than younger people. Older people can be prime targets because of their assets.
5.
Which of the following descriptions of a work-at-home job is most likely to be that of a scam?
Choose wisely. There is only one correct answer.
An assurance that anyone can do it. Of the choices, this one is the most likely to be from a scam.
6.
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.
7.
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.
8.
How do pyramid schemes differ from legitimate sales opportunities?
Choose wisely. There is only one correct answer.
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.