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Worksheets11.4 - Scams & Frauds
Total questions: 10
Worksheet time: 20mins
Which of the following is likely a scam?
A hotel receptionist asks you to verify the first and last name on your hotel reservation before giving you the key
You call your doctor’s office and the nurse asks for your medical record number
The IRS calls you and asks you to make a tax payment in the next 24 hours
You receive coupons through a monthly email you subscribed to for your favorite online shopping website
mAll of the following statements are true about scams EXCEPT…
Young people are less likely to fall for scams than older people
The number of reported scams has continued to increase over the past decade
There are many types of scams including credit card scams, imposter scams, and more
Scammers are taking advantage of modern technology and shopping trends to scam people
Ben realized they paid a scammer using a credit card. What is the next BEST step they should take?
Wait for their next credit card statement to verify that the payment went through
Attempt to contact the scammer to get them to reverse the transaction
Shred their credit card and limit purchases for the next 10 days
Call their bank and ask them to reverse the transaction and get their money back
Which of the following is a red flag for a pyramid scheme?
A business stresses recruitment of new members over sales of a product
A business hires three new people for its executive team
A business posts on social media to promote its new product
A business pays its employees an annual bonus at the end of the year
What is the difference between a Pyramid Scheme and a Multi-Level Marketing Company?
A Pyramid Scheme is legal whereas a Multi-Level Marketing Company is illegal
A Pyramid Scheme does not sell a product whereas a Multi-Level Marketing Company does
A Pyramid Scheme sells an actual product whereas a Multi-Level Marketing Company does not
There is no difference between a Pyramid Scheme and a Multi-Level Marketing Company
What is a "Pump and Dump" scam?
A scheme which pools investors’ money together but only a small percentage of the pool is actually invested
A scheme that attempts to boost the price of a stock through recommendations based on false or misleading statements
A scheme where an investor collects your money for investment but never actually makes a purchase and instead keeps the money for themselves
A scheme that attempts to beat the overall market's return by investing in high-cost index funds
The IRS reaches out to you stating you owe additional money in taxes that must be paid immediately. Which action below indicate this is NOT a scam?
The IRS has contacted you by email
The IRS has insisted on a certain form of payment
The IRS has threatened to have local law enforcement arrest you for not complying
The IRS has contacted you with a formal letter
What is phishing?
Phishing is a business model that recruits members via a promise of payments or services
Phishing is a fraudulent attempt to obtain sensitive information such as usernames, passwords and financial information via electronic communication
Phishing is a fraudulent attempt to take over or delete your presence on social media
Phishing is a fraudulent attempt to deposit funds into an FDIC insured bank account for later use
Before accepting an investment opportunity, you should use FINRA's BrokerCheck to research your broker. What information is NOT available on this website?
A background check
Any complaint history
An opportunity to request evidence that this broker is a sworn fiduciary
A list of this broker's fees and profits
What are the two red flags that Frank Abagnale tells consumers to look out for?
Urgent need for Money & Personal information
Urgent need for Money & Unconfirmed email source
Personal Information & Credit Score
Ask for email address & home phone number
