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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 might a work-at-home job in which you reship items you receive in the mail to others be a scam?
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The items might actually be stolen. Reshipping is often a cover for sending stolen items.
3.
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.
4.
In the world of cryptocurrency, what is a private key?
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A string of secret numbers used to sign transactions. A private key provides access to your cryptocurrency.
5.
Telephone swindlers demand immediate compliance from their victims because _______.
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Both of the above. Swindlers don't want their scams to be exposed.
6.
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.
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.
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.