Fraud and Financial Safety

Question 1

What are the 4 most common types of fraud

Answer 1

1. Subscription Traps
2. Phishing Scams
3. Tech Support Scams
4. Romance Scams

Question 2

What is a subscription trap

Answer 2

Sign up online or on the phone for

Free trial

Discounted fee product / service only to find that you have been unwittingly locked into costly repeat payments

Question 3

What is a phishing scam

Answer 3

Involve tricking individuals into providing sensitive info (usernames, passwords, credit card info, personal info)

Done through deceptive emails, messages, or websites mimic legitimate entities

Question 4

What is a tech support scam

Answer 4

Fraudsters contact individuals claiming to be from a reputable tech support service (often stating that the person’s computer has a virus or other issue)

Scammer offers to fix the problem for a fee or gains remote access to the victim’s computer to install malicious software.

Question 5

What is a romance scam

Answer 5

Building a romantic relationship with someone online who, in reality, is a scammer

Create fake profiles on dating sites, social media platforms

Establish emotional connections with their victims

They may request money,

Citing various reasons (supposed emergency, travel expenses, or financial hardships)

Question 6

What is identity theft

Answer 6

Is a crime in which an attacker uses fraud or deception to obtain personal or sensitive information from a victim and misuses it to act in the victim’s name

Question 7

What is the ponzi scheme

Answer 7

Is an investment fraud that pays existing investors with funds collected from new investors. Ponzi scheme organizers often promise to invest your money and generate high returns with little or no risk

Question 8

What is Price fixing

Answer 8

Anti competitive agreement between participants on the same side in a market to buy or sell a product, service, or commodity only at a fixed price, or maintain the market conditions such that the price is maintained at a given level by controlling supply and demand

Question 9

What is Predatory Pricing

Answer 9

is setting a very low price in order to drive competitors out of business. for example, apple can charge 300 bucks for the new iphone 15 and sell so many to drive competitors out of business