Consumer Economics - Consumer Skills Unit Review

An influencer is...

A person who has the ability to convince someone to buy a product or service by promoting it on social media

What is a Pump and Dump scam?

A scam in which a fraudster will boost the price of a stock based on false or misleading information and then sell the stock

What is a pyramid scheme?

A type of scam in which payments from lower-level, recruited employees are pushed to higher-level employees

Which of the following 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

The two major signs of a scam are a request for personal information and ___________.

An urgent need for money

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

Each of the following is one of the six ways of influence EXCEPT...

Blackmail

Jill wants to take steps to better protect her personal information. What is ONE step she can take to do so? Explain how this step would help.

Check her free credit report at least once each year to check for any mistakes, fraudulent accounts, etc. so that she can catch errors early on Use an identity protection service (for a fee) to protect her information Freeze her credit so no one can open new lines of credit in her name

All of the following are ways to use social media more mindfully EXCEPT...

Check your social media accounts frequently throughout the day

Which of the following does social media influence consumers to buy the MOST of?

Clothing or accessories

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. Which of the following factors might help Tara find the information she's looking for?

Customer reviews

Which of these students is 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."

Why might someone fall for a scam even if they are aware of the common signs or red flags?

Emotions like fear, a desire to help others, etc. can convince someone to fall for a scam Fraudsters are always changing how they are targeting victims, so someone may not be aware of the most recent tricks and trends that fraudsters are using

Which type of identity theft is MOST prevalent for people age 19 and under?

Employment or tax-related fraud

Describe a situation in which it makes sense for someone to comparison shop and why.

Examples could include shopping for a new car, electronic device, household supplies, etc 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

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

When deciding to follow an influencer on social media, the most important thing teens value is...

How authentic the influencer appears

Which of the following is TRUE about recent trends in identity theft?

Multiple large organizations have experienced data breaches that have leaked consumer information

Influencers can have a direct impact on consumers' financial habits because they typically...

Rate and review products that their followers are likely to purchase

Three days ago, Niko used his credit card to buy a new jacket he found through a social media ad. He still has not gotten a receipt of payment or confirmation email regarding the purchase and he's starting to suspect he was scammed. What is the next BEST thing Niko should do?

Report the fraudulent charge to his bank and ask them to reverse the transaction

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)

Zach receives a notification from the IRS that he owes money. Which of the following 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

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

Sofia receives a text message from her bank. All of the following indicate that the text may actually be a scam EXCEPT...

The text message asks her to call the number that is on the back of her debit card

Which of the following is TRUE about scams?

There are a number of red flags you can be aware of that can help you avoid being scammed

Sean wants to buy a new backpack for school. Which of the following factors should he be LEAST concerned about when comparison shopping?

WHEN the backpack was made

Sean received a notification that his information was compromised and he is likely a victim of identity theft. Sean should take all of the following steps EXCEPT...

Wait for 90 days before contacting the Federal Trade Commission to see if they catch the fraudulent behavior

Which of these most accurately defines a dark pattern?

When design features trick users into doing something that benefits the business

What is a potential benefit of comparison shopping?

You are more likely to find a product that best fits within your budget

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