Standard 9: Fraud and Identity Theft

Using a person’s name or personal information without permission to make purchases or get loans is called

• fraud.

• acting.

• identity theft.

• impersonation.

Bargain City advertises a special price on a certain type of roller blades. They really do not have those roller blades in the store. Instead, they have a much more expensive brand to sell you at double the advertised price. This practice is called

• fraud and hook.

• illegal advertising.

• bait and switch.

• false advertising.

You are invited to invest in a birthday club. Once a month, the club meets to celebrate those with birthdays that month. You are required to pay $1,000 to join the club, and you are promised to receive $500 for every person you get to join the club. What should you do?

• Do not join. You do not know enough people who have $500 to invest.

• Go for it. Your best friend invited you to join, so it must be a good deal.

• Go for it. You only need to get two people to join, and you get your money back.

• Do not join. This is a Ponzi Scheme, and you will probably lose all of your money.

If someone comes to your door offering you a great opportunity to invest in a new company, you should

• listen to their sales pitch to see if it is legitimate.

• tell them you are not interested and ask them to leave.

• listen to their sales pitch even though you are not interested.

• sign up for the investment and call your friends so they can invest too.

People who attempt to swindle or trick you into illegal schemes are commonly called

• schemers.

• con artists.

• film flames.

• embezzlers.

If you become the victim of fraud or identity theft, you should

• have a good laugh because it happens to everyone.

• call the police immediately and report what happened.

• contact the person or persons involved and tell them to stop.

• keep quit about it because you made a bad choice and it is your fault.

“Dumpster Diving” refers to the practice of

• going through someone’s trash to find any hidden treasures.

• a new video game where you race dumpsters through a junk yard.

• going through someone’s trash looking for personal information on it.

• throwing a prize in a dumpster, then everyone jumps in to see who can

  find it first.

Which of the following steps would help reduce your potential of being a victim of consumer fraud?

• Delete all e-mails asking for personal information without responding to them.

• Go along with a scheme so you get more information and then report it to local law enforcement officials.

• If you get a special offer in the mail, send cash so they cannot get your personal information from a check or credit card.

• Give your best friends your personal information, like your Social

  Security number and bank account number(s), in case anything happens to you.

_______________ is a legal term used when someone knowingly deceives you for their own personal gain.

• Fraud

• Phishing

• Scheming

• Identity Theft

The MOST secure password for Internet or other uses should include

• your first name or birthday.

• a series of letters than mean nothing.

• your Social Security number.

• a combination of numbers and letters.