Question 1

Which of the following observations is NOT true of foreign-advance fee scams?

Accepted Answer

A)  Perpetrators are well-known businesses and there is usually some urgency to participate. 
B)  Perpetrators claim to trust the victim with their money or assets. 
C)  Perpetrators are always willing to transfer money or other assets to the victims, but only after money or information is extracted. 
D)  Perpetrators claim to have access to large sums of money or assets. 
A)  Perpetrators are well-known businesses and there is usually some urgency to participate. 
B)  Perpetrators claim to trust the victim with their money or assets. 
C)  Perpetrators are always willing to transfer money or other assets to the victims, but only after money or information is extracted. 
D)  Perpetrators claim to have access to large sums of money or assets. A

Question 2

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

Accepted Answer

A)  Action stage 
B)  Discovery stage 
C)  Trial stage 
D)  Concealment stage 
A)  Action stage 
B)  Discovery stage 
C)  Trial stage 
D)  Concealment stage A

Question 3

Which of the following is a true statement regarding the Gramm-Leach-Bliley Act?

Accepted Answer

A)  The act gives financial institutions the right to share personal information for a profit. 
B)  The act expressly requires financial institutions to protect against identity theft. 
C)  The act allows financial institutions to share personal information, as long as it is not for a profit. 
D)  The act protects confidentiality of customer information. 
A)  The act gives financial institutions the right to share personal information for a profit. 
B)  The act expressly requires financial institutions to protect against identity theft. 
C)  The act allows financial institutions to share personal information, as long as it is not for a profit. 
D)  The act protects confidentiality of customer information. A

Question 4

What makes telemarketing fraud more effective than Internet or mail-based approaches?

Accepted Answer

A)  Reduced transaction costs 
B)  Opportunity to speak with a person directly 
C)  Increased size of the fraud 
D)  Absence of government regulations 
A)  Reduced transaction costs 
B)  Opportunity to speak with a person directly 
C)  Increased size of the fraud 
D)  Absence of government regulations

Question 5

Which of the following statements defines shoulder surfing?

Accepted Answer

A)  Criminals physically confront consumers forcing them to reveal their valuable information. 
B)  Criminals follow consumers to discover their buying habits. 
C)  Criminals sneak into victims' homes and steal their information. 
D)  Criminals watch consumers from a nearby location as they give credit card information over the phone. 
A)  Criminals physically confront consumers forcing them to reveal their valuable information. 
B)  Criminals follow consumers to discover their buying habits. 
C)  Criminals sneak into victims' homes and steal their information. 
D)  Criminals watch consumers from a nearby location as they give credit card information over the phone.

Question 6

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

Accepted Answer

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

Question 7

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

Question 8

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

Accepted Answer

A)  Identity theft 
B)  Ponzi scheme 
C)  Magazine fraud 
D)  Telephone fraud 
A)  Identity theft 
B)  Ponzi scheme 
C)  Magazine fraud 
D)  Telephone fraud

Question 9

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 Act 
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 Act

Question 10

Which of these is a second dimensional action in the trial stage of the identity theft?

Accepted Answer

A)  Larger thefts, often involving personal interaction, without much chance of getting caught 
B)  Smallest thefts that lay down a solid foundation for the perpetrator to commit identity theft 
C)  Largest thefts committed after perpetrators have confidence that their schemes are working 
D)  Small thefts to test the stolen information 
A)  Larger thefts, often involving personal interaction, without much chance of getting caught 
B)  Smallest thefts that lay down a solid foundation for the perpetrator to commit identity theft 
C)  Largest thefts committed after perpetrators have confidence that their schemes are working 
D)  Small thefts to test the stolen information

Question 11

According to the text, which of the following is the best defense against becoming a victim of consumer fraud?

Accepted Answer

A)  Avoid Internet offers 
B)  Register on the do-not call list 
C)  Check companies named in all print ads through the Better Business Bureau 
D)  Education 
A)  Avoid Internet offers 
B)  Register on the do-not call list 
C)  Check companies named in all print ads through the Better Business Bureau 
D)  Education

Question 12

A Nigerian money offer e-mail is a form of which of the following scams?

Accepted Answer

A)  Foreign advance-fee scam 
B)  Purchase of real estate scam 
C)  Clearinghouse scam 
D)  Multilevel marketing scam 
A)  Foreign advance-fee scam 
B)  Purchase of real estate scam 
C)  Clearinghouse scam 
D)  Multilevel marketing scam

Question 13

What percent of the population was estimated to have been victims of fraud in 2011?

Accepted Answer

A)  8.5% 
B)  10.8% 
C)  22.8% 
D)  31.5% 
A)  8.5% 
B)  10.8% 
C)  22.8% 
D)  31.5%

Question 14

Snake oil plans are plans that:

Accepted Answer

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

Question 15

Which of the following identity theft actions listed is part of the trial stage, 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 
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

Question 16

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)  Skimming 
A)  Craft assembly 
B)  Bogus mystery shopping 
C)  Mail stuffing 
D)  Skimming

Question 17

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

Question 18

A fraudster changes the physical address or e-mail of the victim so that credit card statements are sent by the financial institution to the perpetrator rather than the victim. Which stage of the identity theft cycle is being discussed here?

Accepted Answer

A)  Verification stage 
B)  Trial stage 
C)  Discovery stage 
D)  Action stage 
A)  Verification stage 
B)  Trial stage 
C)  Discovery stage 
D)  Action stage

Question 19

A clearinghouse scam involves a victim receiving:

Accepted Answer

A)  a letter that claims he or she has inherited a significant amount of money. 
B)  mail from a known party who claims to have access to large sums of money or assets. 
C)  a letter that falsely claims the writer represents a foreign bank. 
D)  an email containing their Social Security number and/or credit information. 
A)  a letter that claims he or she has inherited a significant amount of money. 
B)  mail from a known party who claims to have access to large sums of money or assets. 
C)  a letter that falsely claims the writer represents a foreign bank. 
D)  an email containing their Social Security number and/or credit information.

Question 20

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. 
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.

Which of the following observations is NOT true of foreign-advance fee scams?

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

Which of the following is a true statement regarding the Gramm-Leach-Bliley Act?

What makes telemarketing fraud more effective than Internet or mail-based approaches?

Which of the following statements defines shoulder surfing?

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

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

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

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

Which of these is a second dimensional action in the trial stage of the identity theft?

According to the text, which of the following is the best defense against becoming a victim of consumer fraud?

A Nigerian money offer e-mail is a form of which of the following scams?

What percent of the population was estimated to have been victims of fraud in 2011?

Snake oil plans are plans that:

Which of the following identity theft actions listed is part of the trial stage, first dimensional actions?

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

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

A fraudster changes the physical address or e-mail of the victim so that credit card statements are sent by the financial institution to the perpetrator rather than the victim. Which stage of the identity theft cycle is being discussed here?

A clearinghouse scam involves a victim receiving:

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

The Nature of Fraud

Who Commits Fraud and Why

Fighting Fraud: an Overview

Preventing Fraud

Recognizing the Symptoms of Fraud

Data-Driven Fraud Detection

Investigating Theft Acts

Investigating Concealment

Conversion Investigation Methods

Inquiry Methods and Fraud Reports

Financial Statement Fraud

Revenue- and Inventory-Related Financial Statement Frauds

Liability, Asset, and Inadequate Disclosure Frauds

Fraud Against Organizations

Bankruptcy, Divorce, and Tax Fraud

E-Commerce Fraud

Legal Follow-Up

Filters

Exam 15: Consumer Fraud

Which of the following observations is NOT true of foreign-advance fee scams?

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

Which of the following is a true statement regarding the Gramm-Leach-Bliley Act?

What makes telemarketing fraud more effective than Internet or mail-based approaches?

Which of the following statements defines shoulder surfing?

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

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

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

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

Which of these is a second dimensional action in the trial stage of the identity theft?

According to the text, which of the following is the best defense against becoming a victim of consumer fraud?

A Nigerian money offer e-mail is a form of which of the following scams?

What percent of the population was estimated to have been victims of fraud in 2011?

Snake oil plans are plans that:

Which of the following identity theft actions listed is part of the trial stage, first dimensional actions?

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

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

A fraudster changes the physical address or e-mail of the victim so that credit card statements are sent by the financial institution to the perpetrator rather than the victim. Which stage of the identity theft cycle is being discussed here?

A clearinghouse scam involves a victim receiving:

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

The Nature of Fraud

Who Commits Fraud and Why

Fighting Fraud: an Overview

Preventing Fraud

Recognizing the Symptoms of Fraud

Data-Driven Fraud Detection

Investigating Theft Acts

Investigating Concealment

Conversion Investigation Methods

Inquiry Methods and Fraud Reports

Financial Statement Fraud

Revenue- and Inventory-Related Financial Statement Frauds

Liability, Asset, and Inadequate Disclosure Frauds

Fraud Against Organizations

Bankruptcy, Divorce, and Tax Fraud

E-Commerce Fraud

Legal Follow-Up

Filters