Scams & Fraud
What is a Pump and Dump scam?
What is... A scam in which a fraudster will boost the price of a stock based on false or misleading information and then sell the stock.
2. Influencers can have a direct impact on consumers’ financial habits because they typically...
Rate and review products that their followers are likely to purchase
3. Sean wants to buy a new backpack for school. Which of the following factors should he be concerned about when comparison shopping?
The PRICE of the backpack, The QUALITY of the backpack, REVIEWS left by other consumers.
5. What is TRUE about recent trends in identity theft?
Multiple large organizations have experienced data breaches that have leaked consumer information
4. What are the six ways of influence?
Authority, Commitment and Consistency, Social Proof, Reciprocity, Liking, Scarcity.
Zach receives a notification from the IRS that he owes money. What indicates that the notification is real and not a scam?
The IRS sends him a formal letter in the mail notifying him of taxes he owes
6. When deciding to follow an influencer on social media, the most important thing teens value is...
How authentic the influencer appears
Tara is looking for a new winter coat and has found one in her price range that she really likes. However, she is unfamiliar with the brand and is unsure how long the coat will last. What might help Tara find the information she’s looking for?
Customer reviews
8. Which type of identity theft is MOST prevalent for people age 19 and under?
Employment or tax-related fraud
9. What is an example of the Roach Motel dark pattern?
A website automatically signs you up for a paid subscription when you create an account but there is no easy way to cancel it
11. What is TRUE about scams?
There are a number of red flags you can be aware of that can help you avoid being scammed
10. An influencer is...
A person who has the ability to convince someone to buy a product or service by promoting it on social media
20. What is a potential benefit of comparison shopping?
You are more likely to find a product that best fits within your budget
13. How might freezing your credit help you protect your personal information?
Your credit information is blocked to help prevent someone from opening accounts in your name
Josefina sees an ad on social media featuring a doctor who is promoting a new type of energy drink. The doctor cites her credentials and experience saying, “I’ve been working in the industry for over 20 years. Buy this product!” Which of the six ways of influence is being used in this ad?
Authority
15. What is a pyramid scheme?
A type of scam in which payments from lower-level, recruited employees are pushed to higher-level employees
12. What are ways to use social media more mindfully?
Make a budget and use it to track and adjust your spending from social media
Unfollow or mute accounts that encourage you to spend more money than you’d like
Delay the act of purchasing by adding something you’d like to buy from social media to a “wish list”
26. Identify TWO ways social media can influence you to spend money.
Social media ads and marketing that encourage you to spend money
Following influencers who promote products or services
Trying to keep up with what other people seem to be doing or have through their posts (FOMO)
16. Sean received a notification that his information was compromised and he is likely a victim of identity theft. Sean should take what steps?
Place an extended fraud alert or security freeze on his credit
File an identity theft report with the Federal Trade Commission
Enable Two-Factor Authentication on his accounts for added security
23. What most accurately defines a dark pattern?
When design features trick users into doing something that benefits the business
19. What does it mean if a fraudster accessed your personal information through phishing?
The fraudster tricked you into revealing personal information through email, texts, or other electronic communication
18. What does social media influence consumers to buy the MOST of?
Clothing or accessories
27. Describe a situation in which it makes sense for someone to comparison shop and why.
Comparison shopping provides benefits such as:
● Finding a product that fits within your budget
● Finding discounts and deals on products
● Reading reviews from other users
● Finding products that best meet your needs and wants
24. What’s an example of someone doing a POOR job of protecting themselves against identity theft?
David: “I use the same login credentials for all my bank accounts to keep my finances organized together.”
28. Winston wants to cancel a paid subscription that he accidentally signed up for as a result of a dark pattern on a website. While it took him only a minute to sign up, he’s having a difficult time canceling his subscription. What are TWO costs Winston might pay if he’s not able to cancel his subscription soon?
He might have to spend time and energy contacting the company to cancel
He may continue to receive unwanted emails and other marketing messages until he is able to cancel
He will continue to be charged for the subscription until he can cancel