!! Chapter 15

Identity theft is the largest type of consumer fraud

True

identity theft can result in an individual's loss of credit

True

keeping your wallet in your front pocket will help prevent it from being stolen

True

A discarded tax return has enough information to steal someone's identity

true

Because it is impossible to market at an assortment of levels, every multilevel marketing scheme is fraudulent

true

Pyramid organizations eventually fail, causing all but a few investors to lose their investments

true

a fraud scam in which the perpetrator, falsely claiming to represent a foreign bank, tries to get victims to invest in nonexistent foreign venture capital companies for high returns is called a clearinghouse scam

true

illegal multilevel marketing companies almost always focus their efforts on the recruiting of new members rather than on the selling of legitimate products

true

the best way to prevent a fraudster from establishing a preapproved credit card in your name is to destroy all credit card applications as soon as you receive them

False

those most susceptible to consumer fraud a) uneducated or elderly b) wealthy and prominent c) troubled with credit card debt d) lonely and depressed

a) uneducated or elderly

consumers should provide credit card numbers or bank account information over the phone only when: a) they initiated the call and are purchasing a legitimate product b) they are asked to give the info c) the entity receiving this info is a legitimate company d) they feel confident that the receiving entity will protect e) such information doing so qualifies them to receive certain benefits

a. they initiated the call and are purchasing a legitimate product

Phishing is the method of: a) using e-mail or other internet applications to deceive people into disclosing valuable personal information b) convincing a person to divulge personal information over the telephone c) Hacking into another's computer files to access personal information d) Hiring a con artist to steal personal information from a person

a. using e-mail or other internet applications to deceive people into disclosing valuable personal information

what is one way to determine if a web site is secure or not a) look for the official logo of the company you want to deal with b) look for an "s" after the http in the url of the web site c) click on a link to see if it works d) call the FTC and ask about the ISP address of the web site

b) look for an "s" after the http in the url of the web site

In order to protect yourself from identity theft, you should: a) only give out your SS # when purchasing a product online or over the telephone b) always shred receipts, credit card offers, doctor bills, insurance info, or an other docs that contain sensitive personal info c) leave your wallet at home or in the car d) maintain the same password for every account e) do all of the above

b. always shred receipts, credit card offers, doctor bills, insurance info, or an other docs that contain sensitive personal info

Multilevel marketing companies: a) are illegal b) increase their distribution process by recruiting additional company sales reps c) can legally pay commission to reps for simply signing up new recruits d) require little time and effort to be successful

b. increase their distribution process by recruiting additional company sales reps

which of the following institutions would NOT be very helpful to call in the event of identity theft a) IRS b) SS Administration c) Local chamber of commerce d) a credit reporting agency

c) Local chamber of commerce

which of the following is not listed in the chapter as a common characteristic of Nigerian scam letters? a) the promise of money to lure victims b) urgency to invest quickly c) picture of perpetrator to assure victims d) strong ties to high ranking foreign officials to lure victims

c) picture of perpetrator to assure victims

The major reason that elderly people are so susceptible to telemarketing fraud is that they: a) are often financially in need b) have an excess amount of cash to invest c) are often lonely and enjoy talking to friendly callers d) none of the above

c. are often lonely and enjoy talking to friendly callers

if you become a victim of identity theft, you should first: a) wait and see where the perpetrator is spending your money and then plan with FBI b) Contact friends and neighbors to inquire if they have any useful info about the perpetrator c) contact the Federal Trade Commission for assistance and advice d) do none of the above

c. contact the Federal Trade Commission for assistance and advice

what is the best defense against consumer fraud? a) signing up with the national do not call registry b) purchasing credit card insurance c) educating yourself about credit card risks d) calling the FTC

c. educating yourself about credit card risks

Which federal statute requires that credit reports can only by obtained for legitimate business needs? a) Title 15 US code S 1692 b) Final Rule - 45 CFT parts 160 & 165 c) Title 15 US Code, Chapter 41 d) Titel 15 US Code S 1681

d) Titel 15 US Code S 1681

what does https stand for? a) hypertext transfer point - secure b) hypertext transfer point - site c) hypertext transfer protocol - system d) hypertext transfer protocol - sign e) hypertext transfer protocol -secure

e) hypertext transfer protocol -secure

which of the following is a common characteristic of fraudulent money offer letters? a) the letter will ask for help, convincing the victim that assistance is desperately needed b)through the letter, the perpetrator will try to build a relationship of trust with the victim c) the letter promises the victim a large amount of money for little or no effort on the victim's part d) the letter will make the victim feel that he or she is the only person receiving the once in a lifetime offer e) all of the above

e. all of the above

The Gram Leach Bliley Act gives you right to: a) periodically change your SS # to avoid identity theft b)receive yearly stipend to cover the losses incurred as a victim of identity fraud c) claim your high credit report although an identity fraudster has damaged it severely d) sue the perpetrator for more money than he or she defrauded you e) opt out of having your personal info sold to organizations

e. opt out of having your personal info sold to organizations

By federal law, no organization or company can sell individuals' personal information without their express written consent

false

Congress outlawed pyramid organizations in the US in 1934

false

Consumer fraud only affects those who often use credit cards online

false

Once an identity theft victim has reported a fraud to the FTC, the FTC will help a victim contact the FBI, Secret Service, and local police to coordinate an investigation

false

Only stupid people who are not careful are victims of consumer fraud

false

Since SS card does not contain your photo, it is impossible to have your identity stolen by merely losing your SS card

false

The Gramm-Leach-Bliley Act states that it is illegal for organizations to share your personal information with any other party or individual

false

The National Processing Company was given authority by the FTC to pre-register consumers for the do not call registry

false

elderly people are more susceptible to chain letter scams than any other type of fraud

false

the larger the amount requested by a fraudulent telemarketer, the easier it is for him or her to deceive victims

false