Home > Basics > Beginner
Basics Beginner: Understanding and Avoiding Fraud and Scams

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
Why might a scammer go to great lengths to detail the intricate aspects of an "opportunity"?
Choose wisely. There is only one correct answer.
Detail makes the opportunity look legitimate. The more detail, the more real it seems.
2.
Being paid to recruit others to a sales opportunity is sufficient to indicate that the opportunity is actually a pyramid scheme.
Choose wisely. There is only one correct answer.
False. Though it's a part of a pyramid scheme by nature, being paid to recruit others is not by itself an indicator, as even legitimate firms may offer fees for recruitment.
3.
Scammers who target the elderly usually come across as _______.
Choose wisely. There is only one correct answer.
Likable. Scammers who target the elderly put on a positive face. Many elderly find it hard to turn down someone in need.
4.
The perpetrators of Ponzi schemes typically pay money to some of the early investors because _______.
Choose wisely. There is only one correct answer.
They want to portray the investment as legitimate. This is often the perfect way to keep the later investors faithful.
5.
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.
6.
A blockchain is a transparent ledger of _______ transactions that anyone can view.
Choose wisely. There is only one correct answer.
Transactions. Blockchains maintain a decentralized, secure record of transactions.
7.
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.
8.
What does a romance scammer usually try to get first, before coming after your money?
Choose wisely. There is only one correct answer.
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.