Lesson 20 - Fraud and Scams Flashcards
What is fraud?
Fraud is the act of deceiving someone for personal gain.
True or False: All scams are considered fraud.
True
Fill in the blank: A common type of financial scam is a _____ scheme.
Ponzi
What is a Ponzi scheme?
A Ponzi scheme is a type of investment scam that pays returns to earlier investors using the capital from newer investors.
Multiple Choice: Which of the following is NOT a type of fraud? A) Identity theft B) Credit card fraud C) Tax evasion D) Tax reduction
D) Tax reduction
What is identity theft?
Identity theft is the unauthorized use of someone else’s personal information to commit fraud.
True or False: Phishing is a technique used to trick people into giving their personal information.
True
What does the term ‘scam’ refer to?
A scam refers to any fraudulent scheme designed to con someone out of money or personal information.
Fill in the blank: A _____ is a fraudulent email that appears to be from a legitimate source.
phishing email
Multiple Choice: Which of the following is a red flag of a scam? A) Too good to be true offers B) High-pressure tactics C) Unsolicited communications D) All of the above
D) All of the above
What is wire fraud?
Wire fraud is a crime that involves using electronic communications to commit fraud.
True or False: Only adults can be victims of financial scams.
False
What should you do if you suspect you are a victim of fraud?
Report it to the authorities and monitor your financial accounts.
Fill in the blank: Scammers often use _____ to make their offers seem legitimate.
fake testimonials
Multiple Choice: Which platform is commonly used for phishing scams? A) Social media B) Email C) Text messages D) All of the above
D) All of the above
