Technopreneurship 2nd PDF Flashcards
Fraudulent or deceptive schemes
Scam
Deceptive scheme or trick used to cheat someone out of something, especially money.
Scam
A type of financial fraud in which people pay to join an organization in exchange for the right to sell memberships to other people.
Pyramid Scheme
All pyramid schemes eventually collapse, and most investors lose their money.
Pyramid Scheme
Closely related to a pyramid scheme but the promoter generally has no product to sell and pays no commission to investors who recruit new members.
Ponzi Scheme
A fraudulent scheme that involves paying existing investors in a nonexistent enterprise with the funds collected from new investors.
Ponzi Scheme
The term “Ponzi Scheme” was coined after a swindler named
Charles Ponzi in 1920
This often promise to invest your money and generate high
returns with little or no risk.
Ponzi Scheme
A name for a type of scam that targets members of a specific demographic. Perpetrators may attempt to relate to or exploit characteristics common to the demographic. Targeted groups can
include the elderly, ethnic groups, and religions.
Affinity Fraud
These scams exploit the trust and friendship that exists in groups of people. Because of the tight-knit structure of many groups, outsiders may not know about the affinity scam.
Affinity Fraud
Victims may try to work things out within the group rather than notify authorities or pursue legal remedies.
Affinity Fraud
This often involve “Ponzi” or pyramid schemes where new investor money is used to pay earlier investors, making it appear as if the investment is successful and legitimate.
Affinity Fraud
Means imposing unfair, deceptive, or abusive loan terms on borrowers.
PREDATORY LENDING
Often use aggressive sales tactics and exploit borrowers’ lack of understanding of financial transactions.
PREDATORY LENDING
is the archetypal example of a predatory lender—someone who loans money at an extremely high-interest rate and may even threaten violence to collect on their debts.
Loan Shark
This includes any unscrupulous practices carried out by lenders to entice, induce, mislead, and assist borrowers toward taking out loans they are unable to pay back reasonably or must pay back at a cost that is extremely above the market rate.
PREDATORY LENDING
substantial payment at the end of a loan’s term.
Balloon payment
lender pressures a borrower to refinance, again and again, generating fees and points for the lender each time.
Loan flipping
lender grants a loan based on your asset, say a home or a car, rather than on your ability to repay the loan.
Asset-based lending and equity stripping
Lenders steer borrowers into expensive subprime loans, even when their credit history and other factors qualify them for prime loans.
Steering
Fraudsters typically spread false or misleading information to create a buying frenzy that will “pump” up the price of a stock and then “dump” shares of the stock by selling their own shares at the
inflated price
Pump and Dump Schemes
False or misleading information about a company’s stock price may be spread through sources including social media, investment research websites, investment newsletters, online advertisements, email, Internet chat rooms, direct mail, newspapers, magazines, and radio.
Pump and Dump Schemes
