Choose wisely. There is only one correct answer to each question.
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1.
The perpetrators of Ponzi schemes typically pay money to some of the early investors because _______.
They want to portray the investment as legitimate. This is often the perfect way to keep the later investors faithful.
2.
Why might a scammer go to great lengths to detail the intricate aspects of an "opportunity"?
Detail makes the opportunity look legitimate. The more detail, the more real it seems.
3.
Which of the following descriptions of a work-at-home job is most likely to be that of a scam?
An assurance that anyone can do it. Of the choices, this one is the most likely to be from a scam.
4.
About how many seniors have been victimized by elder financial fraud?
One in 5. About one in 5 Americans over 60 have been defrauded financially.
5.
A blockchain is a transparent ledger of _______ transactions that anyone can view.
Transactions. Blockchains maintain a decentralized, secure record of transactions.
6.
What does a romance scammer usually try to get first, before coming after your money?
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.
7.
Telephone swindlers assume that people they call will want to be courteous to them on the phone.
True. This courtesy is part of how they trap innocent people.
8.
How do pyramid schemes differ from legitimate sales opportunities?
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.