Deck 15: Consumer Fraud

Question 1

Cookies on the World Wide Web can be used to:

A) Force users to click on certain links to leave a web page
B) Gather personal and confidential information about a consumer
C) Steal social security numbers from email messages
D) Initiate popups to unknown sites

Answer 1

B
B: Correct

Question 2

Which of the following method involves using the Internet to steal information?

A) Shoulder surfing
B) Phishing
C) Skimming credit cards
D) Rummaging through a victim's trash

Answer 2

B
B: Correct; Phishing is a high-tech scam that uses spam or pop-up messages to deceive consumers into disclosing credit card numbers.

Question 3

Consumer fraud is described as any fraud that:

A) Is committed by a consumer
B) Takes place against an individual
C) Is fraud committed within an organization
D) Comes from a separate country

Answer 3

B
B: Correct; Consumer frauds are committed against consumers, as opposed to organizations

Question 4

Identity theft is used to describe those circumstances when someone uses another person's:

A) Name and/or address
B) Bank account information
C) Social security information
D) All of the above

Question 5

Which act makes it illegal for any agency that receives federal funding to disclose privacy information about individuals?

A) Identity Theft and Assumption Deterrance Act
B) Family Education Rights and Privacy Act of 1974
C) The Gramm-Leach-Bliley Act
D) Fair Credit Reporting Act

Question 6

Which act gives companies the right to sell consumer information for a profit?

A) Identity Theft and Assumption Deterrance Act
B) Family Education Rights and Privacy Act of 1974
C) The Gramm-Leach-Bliley Act
D) Fair Credit Reporting Act

Question 7

Consumer fraud includes all of the following, except:

A) Telephone fraud
B) Internet services or auctions
C) Identity theft
D) Invigilation

Question 8

Fraudsters might complete a change of address form at the local post office:

A) To redirect their mail when investigations are discovered
B) To have a victim's mail sent to an alternative address as part of an identity theft scheme

Question 9

Shoulder surfing is a scheme where:

A) Criminals physically confront consumers in order to force them to reveal information
B) Criminals follow consumers to discover their buying habits
C) Criminals determine the most susceptible victims
D) Criminals watch consumers from a nearby location to view credit card or PIN numbers

Question 10

Which act provides fines and punishments for identity theft?

A) Identity Theft and Assumption Deterrance Act
B) Family Education Rights and Privacy Act of 1974
C) The Gramm-Leach-Bliley Act
D) Fair Credit Reporting Act

Question 11

According to the Federal Trade Commission, the largest type of consumer fraud is:

A) Identity theft
B) Bogus MLMs
C) Magazine fraud
D) Telephone fraud

Question 12

Federal law limits consumers' debit card fraud liability to:

A) $50
B) $100
C) $150
D) $200
E) None of the above

Question 13

Common identity theft methods include all of the following, except:

A) Filing for bankruptcy in the victim's name
B) Opening new bank accounts in the victim's name
C) Changing a victim's mailing address
D) Destroying personal property, such as a home or car

Question 14

Which act gives individuals the right to opt-out of having their information sold?

A) Identity Theft and Assumption Deterrance Act
B) Family Education Rights and Privacy Act of 1974
C) The Gramm-Leach-Bliley Act
D) Fair Credit Reporting Act

Question 15

Often, fraudsters contacting potential identity theft victims and act as a representative of a business to verify previously gathered information. This is known as:

A) Phishing
B) Pretexting
C) Mail stuffing
D) Skimming
E) None of the above

Question 16

Discovery (gaining and verifying information) is part of the:

A) Identity theft cycle
B) Fraud triangle
C) Investigative model
D) Personal vandalism cycle

Question 17

The Gramm-Leach-Bliley Act:

A) Gives financial institutions the right to share personal information for a profit
B) Prevents financial institutions from sharing personal information for a profit
C) Allows financial institutions to share personal information, as long as it is not for a profit
D) Prevents financial institutions from sharing personal information in any form

Question 18

All of the following are ways to minimize your risk of identity theft, except:

A) Opting out of pre-approved credit cards
B) Shredding mail that contains detailed information
C) Using strong passwords and changing them often
D) All of the above are methods of minimizing risk

Question 19

Cover up or concealment actions involve any actions:

A) That keep an investigator warm during a surveillance
B) That are used to keep a potential fraudster unaware of invigilation
C) That are used to cover the financial footprints of a perpetrator
D) That cover up the investigative steps of a fraud investigator

Question 20

All of the following are red flags for potential investment scams except:

A) Pressures to get in early on the investment
B) A business with a history of bankruptcy
C) Use of a special tax loophole
D) Assurance of low personal involvement
E) All of the above are red flags for potential investment scams

Question 21

_________ people are not particularly susceptible to consumer fraud except:

A) Uneducated
B) Elderly
C) Gullible
D) Trusting
E) None of the above

Question 22

A Nigerian Money Offer email scam is a form of:

A) Foreign advance-fee scam
B) Purchase of real estate scam
C) Clearing house scam
D) Disbursement of money from wills scam

Question 23

Accumulating documentation is part of which stage of the identity theft cycle?

A) The action stage
B) The discovery stage
C) The trial stage
D) The concealment stage

Question 24

Multi-level Marketing schemes have often been dubbed:

A) Ponzi Schemes
B) Foreign Advance Schemes
C) Identity Theft Schemes
D) Shoulder Surfing Schemes

Question 25

Which organization should victims of identity theft contact first?

A) Social Security Office
B) A local police department
C) The victim's credit organization, such as Trans Union, Equifax, or Experian.
D) Federal Trade Commission

Question 26

The elderly are often targets for consumer fraud because of all of the following, except:

A) The elderly are often lonely
B) The elderly are often embarrassed they have been victims of fraud
C) The elderly are often extremely trusting and do not believe others will take advantage of them
D) The elderly have significant time to investigate new products

Question 27

Trans Union, Equifax, and Experian are examples of:

A) Identity Theft Investigation Firms
B) Credit Reporting Agencies
C) Money Transfer Agencies
D) Equal Opportunity Agencies

Question 28

All of the following are types of foreign advance schemes, except:

A) Disbursement of money from wills
B) Multi-level marketing scams
C) Sale of crude oil below market price
D) Purchase of real estate scam

Question 29

A clearinghouse scam:

A) Involves a victim receiving a letter that claims he or she has inherited a significant amount of money
B) Involves a victim that has purportedly won the clearinghouse sweepstakes
C) Involves a victim receiving a letter that falsely claims the writer represents a foreign bank
D) Involves a victim receiving an email containing their social security and/or credit information

Question 30

Snake Oil plans are plans that usually include:

A) Animal byproducts
B) Miracle products
C) Internet-based, service products
D) Immaterial products

Question 31

A Nigerian money offer scam normally does all of the following, except:

A) States the need for urgent assistance
B) Makes the victim feel like he or she is the only recipient of the offer
C) Uses the traditional mail system to increase believability
D) Tries to build a relationship of confidence with the recipient

Question 32

The process whereby representatives of Multi-level Marketing companies are required to buy large, expensive amounts of inventory is called:

A) Ground Floor Opportunity
B) Snake Oil
C) Front Loading
D) Headhunter Fees

Question 33

Multi-level Marketing Companies are illegal in the United States.

Question 34

Product testing scams are frauds that:

A) Ask consumers to review "new" products for a price
B) Do not include money since testing is involved
C) Involve mystery shopping products
D) Mail stuffing scams

Question 35

Which act provides exact procedures for correcting mistakes on credit reports?

A) Fair Credit Billing Act
B) Fair Debt Collection Practices Act
C) The Gramm-Leach-Bliley Act
D) Fair Credit Reporting Act