Video Questions
The “Polka King” (Jan Lewan) scheme is best described as:
A Ponzi-style fraud where investor funds were used to pay earlier investors while presenting a profitable entertainment business
What is a common tactic used by impersonation scams?
Calling or emailing while pretending to be a bank, government agency, or trusted company to request personal data
Which agency investigates bad food or medicine safety issues?
FDA
Which historical Ponzi schemer inspired the name for this type of fraud?
Charles Ponzi
A red flag for many scams is:
Unregistered or unlicensed sellers and products
What best describes the Takata airbag recall issue?
Airbags whose inflators could explode and send metal fragments into vehicle occupants
Which of the following is NOT a common sign of an investment scam?
A. Promises of guaranteed high returns with little or no risk
B. Overly consistent returns regardless of market conditions
C. Detailed, audited financial statements from reputable independent auditors
D. Pressure to act quickly or keep money invested
C. Detailed, audited financial statements from reputable independent auditors
Which agency handles complaints against businesses and provides consumer reviews (but is not a government regulator)?
What best describes a Ponzi scheme?
A fraudulent investment that pays earlier investors with funds from newer investors
What is a strategy that helps limit damage from identity theft?
Monitoring and freezing credit reports when necessary
What was a consequence for Jan Lewan after authorities uncovered his “Polka scam”?
He faced criminal charges and investors were unable to recover their full investments
"Too good to be true" offers commonly include which of the following?
A. Realistic, market-based returns explained in writing
B. Guaranteed high returns with little or no explained risk
C. Clear regulatory registration details and independent audits
D. Transparent customer service lines and written refund policies
B. Guaranteed high returns with little or no explained risk
Which agency is primarily responsible for investigating unsafe consumer products like a dangerous toy?
CPSC
Why do Ponzi schemes eventually collapse?
New investors stop joining or too many investors request withdrawals
If you receive an unsolicited email that asks you to verify your bank password, you should first:
Delete the email or report it as phishing and contact your bank using a known phone number or website
How could an investor have reduced the risk of falling victim to the Polka King Ponzi scheme?
Check for business registration, request audited financial statements, and verify ticket sales or revenue sources independently
Identity theft occurs when:
Someone uses another person's Social Security number, credit card, or passwords without permission
Which agency would you contact about misleading advertising or general fraud complaints?
FTC
What best explains why early investors in a Ponzi scheme might appear to be earning legitimate profits?
Early investors are paid using funds contributed by newer investors, creating the illusion of profit
What actions are recommended prevention step before investing?
Verify registration and licensing of investment products and sellers with regulators or state authorities
Which agency played a leading role in overseeing the investigation and recall of Takata airbags in the United States?
NHTSA
Phishing schemes most often try to:
Obtain personal or financial information by impersonating trusted sources
Which resource is appropriate to contact for internet, phone, or cable company complaints?
FCC
How might social networks and word-of-mouth contribute to the spread of a Ponzi scheme?
They can amplify trust because friends or family members vouch for the scheme, encouraging others to invest
If you suspect unauthorized activity on your credit card, you should:
A. Ignore it; small charges will balance out over time
B. Report the activity to your card issuer immediately and consider freezing or monitoring your credit
C. Send your card number to the merchant to verify purchases
D. Close your bank account and open a new one without notifying relevant companies
B. Report the activity to your card issuer immediately and consider freezing or monitoring your credit