Question 1

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

Accepted Answer

A)  Identity theft
B)  Ponzi scheme
C)  Magazine fraud
D)  Telephone fraudE) A) and B)
F) None of the above

Question 2

Identify the complaint database developed by the U.S.Federal Trade Commission.

Accepted Answer

A)  Consumer Watch
B)  Fraud Watchdog
C)  Consumer Sentinel
D)  Identity Theft AssistanceE) B) and D)
F) A) and D)

Question 3

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

Accepted Answer

A)  Identity Theft and Assumption Deterrence Act
B)  Family Education Rights and Privacy Act of
C)  The Gramm-Leach-Bliley Act
D)  Fair Credit Reporting ActE) C) and D)
F) All of the above

Question 4

What is the most important way to fight identity theft?

Accepted Answer

A)  By shredding mail that contains detailed information.
B)  By taking extra care of the personal valuable information.
C)  By using strong passwords and changing them often.
D)  By preventing it from happening in the first place.E) A) and C)
F) None of the above

Question 5

What is the most detrimental consequence of identity theft?

Accepted Answer

A)  The loss of physical assets.
B)  The loss of credit, reputation, and erroneous information.
C)  Time lost in reporting the fraud.
D)  The actual loss of money.E) A) and B)
F) A) and C)

Question 6

Which federal statute protects the privacy and confidentiality of patient information?

Accepted Answer

A)  Family Educational Rights and Privacy Act
B)  Identity Theft and Assumption Deterrence Act
C)  Gramm-Leach-Bliley Act
D)  Health Information Portability and Accountability ActE) A) and B)
F) B) and D)

Question 7

Which of the following is a scam in which consumers respond to an advertisement that promises income simply for filling envelopes?

Accepted Answer

A)  Craft assembly
B)  Bogus mystery shopping
C)  Mail stuffing
D)  SkimmingE) A) and D)
F) A) and C)

Question 8

Which of the following involves the use of Internet to steal important information?

Accepted Answer

A)  Shoulder surfing
B)  Phishing
C)  Skimming a credit card
D)  Dumpster divingE) None of the above
F) All of the above

Question 9

Which of the following is a scam where perpetrators promise high pay for working on different projects like wooden calendars,paper towel holders,hair clips,or holiday decorations?

Accepted Answer

A)  Product testing
B)  Mail stuffing
C)  Craft assembly
D)  SkimmingE) B) and C)
F) A) and D)

Question 10

Which of the following is the term for a fraudulent process whereby even representatives of legitimate MLMs are required to buy large,expensive amounts of inventory.

Accepted Answer

A)  forward pricing
B)  snake oil
C)  front loading
D)  opportunity meetingE) C) and D)
F) B) and D)

Question 11

Which of the following is NOT a common identity theft method?

Accepted Answer

A)  filing for bankruptcy under 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.E) A) and B)
F) None of the above

Question 12

Which stage is considered to be the most critical stage of the identity theft cycle?

Accepted Answer

A)  Action stage
B)  Trial stage
C)  Discovery stage
D)  Cover-up stageE) B) and C)
F) A) and B)

Question 13

Product testing is a fraud:

Accepted Answer

A)  that request the consumers to review the products presented in the brochures and send their commentaries to the supplier for review.
B)  where consumers respond to an advertisement that promises income simply for stuffing envelopes.
C)  that promise victims a job that involves strolling through stores, enjoying the displays, shopping for merchandise, and then filing reports on the experiences they have had.
D)  where perpetrators promise high pay for working on different projects.E) C) and D)
F) B) and D)

Question 14

Snake oil plans are plans:

Accepted Answer

A)  that make their money by getting new people to buy property in exotic locations.
B)  that promise enormous earnings or claim to sell miracle products.
C)  that motivate the purchase of unusually overpriced goods or services.
D)  that make people believe that they will make money simply because they are one of the earliest investors.E) A) and B)
F) All of the above

Question 15

Which of the following is the limit set on consumers' credit card fraud liability by Federal law?

Accepted Answer

A)  $50
B)  $100
C)  $150
D)  $200E) B) and D)
F) All of the above

Question 16

Accumulating documentation belongs to which stage of the identity theft cycle?

Accepted Answer

A)  The action stage
B)  The discovery stage
C)  The trial stage
D)  The concealment stageE) A) and B)
F) B) and D)

Question 17

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

Accepted Answer

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.E) B) and D)
F) None of the above

Question 18

Which act limits consumers' liability for fraudulent credit card charges?

Accepted Answer

A)  Identity Theft and Assumption Deterrence Act
B)  Fair Credit Billing Act
C)  Family Education Rights and Privacy Act
D)  Fair Credit Reporting ActE) A) and B)
F) A) and D)

Question 19

Which of the following identity theft actions listed is considered to be part of the first dimensional actions?

Accepted Answer

A)  efforts to gain victim's personal information.
B)  larger thefts, often involving personal interaction, without much chance of getting caught.
C)  largest thefts committed after perpetrators have confidence that their schemes are working.
D)  small thefts to test the stolen information.E) C) and D)
F) None of the above

Question 20

Which dimensional actions are the most risky for the identity thief?

Accepted Answer

A)  Third dimensional actions
B)  Second dimensional actions
C)  First dimensional actions
D)  Fourth dimensional actionsE) C) and D)
F) B) and C)

Exam 15: Consumer Fraud

Accumulating documentation belongs to which stage of the identity theft cycle?

Correct AnswerverifiedShow Answer

Identify the complaint database developed by the U.S.Federal Trade Commission.

Correct AnswerverifiedShow Answer

Which stage is considered to be the most critical stage of the identity theft cycle?

Correct AnswerverifiedShow Answer

Which of the following is the term for a fraudulent process whereby even representatives of legitimate MLMs are required to buy large,expensive amounts of inventory.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Product testing is a fraud:

Correct AnswerverifiedShow Answer

Which federal statute protects the privacy and confidentiality of patient information?

Correct AnswerverifiedShow Answer

What is the most detrimental consequence of identity theft?

Correct AnswerverifiedShow Answer

Which of the following is NOT a common identity theft method?

Correct AnswerverifiedShow Answer

Snake oil plans are plans:

Correct AnswerverifiedShow Answer

Which dimensional actions are the most risky for the identity thief?

Correct AnswerverifiedShow Answer

Which act limits consumers' liability for fraudulent credit card charges?

Correct AnswerverifiedShow Answer

Which of the following is a scam where perpetrators promise high pay for working on different projects like wooden calendars,paper towel holders,hair clips,or holiday decorations?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is a scam in which consumers respond to an advertisement that promises income simply for filling envelopes?

Correct AnswerverifiedShow Answer

What is the most important way to fight identity theft?

Correct AnswerverifiedShow Answer

Which of the following involves the use of Internet to steal important information?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following identity theft actions listed is considered to be part of the first dimensional actions?

Correct AnswerverifiedShow Answer

Which of the following is the limit set on consumers' credit card fraud liability by Federal law?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified