Consumer Economics - Consumer Skills Unit Review

What is a Pump and Dump scam?

• Following influencers who promote products or services
• Use an identity protection service (for a fee) to protect her information
• A scam in which a fraudster will boost the price of a stock based on false or misleading information and then sell the stock
• Emotions like fear, a desire to help others, etc. can convince someone to fall for a scam

Influencers can have a direct impact on consumers' financial habits because they typically...

• Rate and review products that their followers are likely to purchase
• Employment or tax-related fraud
• Fraudsters are always changing how they are targeting victims, so someone may not be aware of the most recent tricks and trends that fraudsters are using
• Use an identity protection service (for a fee) to protect her information

Sean wants to buy a new backpack for school. Which of the following factors should he be LEAST concerned about when comparison shopping?

• David: "I use the same login credentials for all my bank accounts to keep my finances organized together."
• WHEN the backpack was made
• You are more likely to find a product that best fits within your budget
• Multiple large organizations have experienced data breaches that have leaked consumer information

Each of the following is one of the six ways of influence EXCEPT...

• Freeze her credit so no one can open new lines of credit in her name
• WHEN the backpack was made
• A person who has the ability to convince someone to buy a product or service by promoting it on social media
• Blackmail

Which of the following is TRUE about recent trends in identity theft?

• A website automatically signs you up for a paid subscription when you create an account but there is no easy way to cancel it
• There are a number of red flags you can be aware of that can help you avoid being scammed
• He may continue to receive unwanted emails and other marketing messages until he is able to cancel
• Multiple large organizations have experienced data breaches that have leaked consumer information

When deciding to follow an influencer on social media, the most important thing teens value is...

• WHEN the backpack was made
• How authentic the influencer appears
• Use an identity protection service (for a fee) to protect her information
• Wait for 90 days before contacting the Federal Trade Commission to see if they catch the fraudulent behavior

Zach receives a notification from the IRS that he owes money. Which of the following indicates that the notification is real and not a scam?

• Finding a product that fits within your budget
• Wait for 90 days before contacting the Federal Trade Commission to see if they catch the fraudulent behavior
• The IRS sends him a formal letter in the mail notifying him of taxes he owes
• Your credit information is blocked to help prevent someone from opening accounts in your name

Which type of identity theft is MOST prevalent for people age 19 and under?

• Examples could include shopping for a new car, electronic device, household supplies, etc
• Employment or tax-related fraud
• Freeze her credit so no one can open new lines of credit in her name
• The fraudster tricked you into revealing personal information through email, texts, or other electronic communication

Which of the following is an example of the Roach Motel dark pattern?

• A website automatically signs you up for a paid subscription when you create an account but there is no easy way to cancel it
• Check her free credit report at least once each year to check for any mistakes, fraudulent accounts, etc. so that she can catch errors early on
• An urgent need for money
• Employment or tax-related fraud

An influencer is...

• Check her free credit report at least once each year to check for any mistakes, fraudulent accounts, etc. so that she can catch errors early on
• A person who has the ability to convince someone to buy a product or service by promoting it on social media
• The fraudster tricked you into revealing personal information through email, texts, or other electronic communication
• Finding a product that fits within your budget