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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 might a scammer go to great lengths to detail the intricate aspects of an "opportunity"?
Choose wisely. There is only one correct answer.
Scams are necessarily complex
The law requires it
Detail makes the opportunity look legitimate
To protect you as much as possible
Detail makes the opportunity look legitimate. The more detail, the more real it seems.
3.
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.
4.
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 65 have been defrauded financially.
5.
Creating artificial demand for a stock and then selling it to make a quick profit is known as _______.
Choose wisely. There is only one correct answer.
Prime bank note fraud
A Ponzi scheme
Pump and dump
All of the above
Pump and dump. Pumping and dumping means creating artificial demand and then selling in order to gain from it.
6.
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.
A long list of all the companies it serves
An assurance that anyone can do it
It pays twice minimum wage
Its physical address, phone number, and Website
An assurance that anyone can do it. Of the choices, this one is the most likely to be from a scam.
7.
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.
8.
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.
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DONE