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1.
How do pyramid schemes differ from legitimate sales opportunities?
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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.
Why are so many frauds tailored to the elderly?
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All of the above. Though these do not describe all elderly, they describe enough that criminals target them.
3.
A blockchain is a transparent ledger of _______ transactions that anyone can view.
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Transactions. Blockchains maintain a decentralized, secure record of transactions.
4.
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.
5.
Which of the following job offers is most likely a work-at-home scam?
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Processing rebates for two hours a day for $500. Pay that is far above market rates is a classic sign of a scam.
6.
Telephone swindlers assume that people they call will want to be courteous to them on the phone.
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True. This courtesy is part of how they trap innocent people.
7.
Creating artificial demand for a stock and then selling it to make a quick profit is known as _______.
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Pump and dump. Pumping and dumping means creating artificial demand and then selling in order to gain from it.
8.
Romance scammers try to prey on our _______.
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Any of the above. A romance scammer takes advantage of our basic human goodness in order to take money from us.