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.
It is possible to actually receive what you were promised in a money transfer scam.
Choose wisely. There is only one correct answer.
True. Though rare, it can happen, but you are usually being used to cover another person's illegal activity, and you can get in trouble for it.
2.
Why are older people common targets for romance scammers?
Choose wisely. There is only one correct answer.
They usually have more assets than younger people. Older people can be prime targets because of their assets.
3.
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.
4.
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.
5.
Telephone swindlers assume that people they call will want to be courteous to them on the phone.
Choose wisely. There is only one correct answer.
True. This courtesy is part of how they trap innocent people.
6.
When you send a cryptocurrency payment to another person, it is not reversible.
Choose wisely. There is only one correct answer.
True. Crypto payments are not reversible; to get one back, the other person would have to send it to you, which is not likely to happen if the person had defrauded you.
7.
Which of the following job offers is most likely a work-at-home scam?
Choose wisely. There is only one correct answer.
Processing rebates for two hours a day for $500. Pay that is far above market rates is a classic sign of a scam.
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.