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Basics Beginner: Understanding and Avoiding Fraud and Scams

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1.
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.
2.
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.
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.
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.
5.
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.
6.
Which of the following descriptions of a work-at-home job is most likely to be that of a scam?
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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. They are a fast way for scammers to defraud others.
8.
If you are unsure whether a broker is licensed, you should contact _______.
Choose wisely. There is only one correct answer.
Your state securities regulator. Brokers are registered at the state level.