Financial Lit Standard 9

What is a con artist?

A con artist is a person who tries to con someone repeatedly without getting caught.

What is "bait and switch"?

Business advertises a product at a low price, but offers a more expensive product when you go to buy it. The lower priced item never existed; it was just used to "bait" you.

What is a great way to protect you from identity theft?

By not giving out any personal information over the phone or internet.

What is "dumpster diving"?

Dumpster diving is when you rummage through a dumpster looking for personal information to use

What should you do if you are the victim of identity theft or fraud? (2)

Identity theft should be handled by the law enforcement. If you are a victim of fraud you should also go to the law. Both are a crime.

What does the most secure internet passwords contain?

Letters and numbers

How can you reduce your potential of being victimized by consumer fraud?

Never give out passwords or personal information on the internet, or phone, do not send cash or checks in the mail without properly taking care of the checks.

What would be a poor choice in regards to becoming a fraud victim?

Not taking action, or really knowing what you were getting into.

How does a Ponzi Scheme work?

Promises investors abnormally high profits from the money they "invest" in the plan. The system is doomed to collapse because there are little or no underlying earnings from the money received by the promoter. Also known as a Pyramid scheme.

What is long firm fraud?

Setting up a company for fraudulent purposes. It appears to be a legitimate business and takes money from investors or customers, but is actually just a scheme.

What is fraud?

Someone knowingly deceives you for his/her own personal gain.

What should you do if you are the victim of identity theft or fraud?

Tell your parents, contact local law enforcement, contact the fraud division of a credit card company, cancel credit cards, and file a complaint at the federal trade commission.

What is identity theft?

When a person uses your personal information for their own benefit

How often can you obtain a free copy of your credit report?

You should review your credit report and statement monthly to make sure you did not pay for anything you shouldn't have.

What should you do if someone comes to your door offering a great opportunity to invest in a new company?

You should tell them that you are not interested, most times an offer is too good to be true.