Basics Beginner: Understanding and Avoiding Fraud and Scams

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1.
What does a romance scammer usually try to get first, before coming after your money?
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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.
2.
If you are unsure whether a broker is licensed, you should contact _______.
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Your state securities regulator. Brokers are registered at the state level.
3.
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.
4.
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.
5.
About how many seniors have been victimized by elder financial fraud?
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One in 5. About one in 5 Americans over 65 have been defrauded financially.
6.
It is possible to actually receive what you were promised in a money transfer scam.
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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.
7.
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.
8.
Why are pyramid schemes unsustainable by nature?
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There are never enough participants to keep the pyramids growing. They are a fast way for scammers to defraud others.