Basic Trivia Quiz on Fraud!

1. You should always check before you invest, even if a recommendation comes from someone you trust and have done business with for many years.

True

False

You should always assess your investment objectives and determine the risk involved
before making any investment decisions. And never allow the salesperson to manage your assets
as he or she sees fit without consulting you.

Explanation

You should always assess your investment objectives and determine the risk involved
before making any investment decisions. And never allow the salesperson to manage your assets
as he or she sees fit without consulting you.

2. High rates of return often involve high risk.

True

False

Be wary of salespeople who offer low-risk investments with high rates of return. Never invest more than you can afford to lose.

Explanation

Be wary of salespeople who offer low-risk investments with high rates of return. Never invest more than you can afford to lose.

3. State regulators can help you verify the legitimacy of an insurance or investment representative or company.

True

False

Take a pledge to stop, think and double-check before you invest.

Explanation

Take a pledge to stop, think and double-check before you invest.

4. You can reduce the number of telemarketing calls you receive.

True

False

Get on the National Do Not Call Registry at www.donotcall.gov or call 888-382-1222.

Explanation

Get on the National Do Not Call Registry at www.donotcall.gov or call 888-382-1222.

5. Websites and brochures are reliable indicators of legitimate investments.

True

False

Unscrupulous salespeople often use professional-looking materials and websites to make their schemes look legitimate. Always double-check before you invest and verify the investment with a state regulator.

Explanation

Unscrupulous salespeople often use professional-looking materials and websites to make their schemes look legitimate. Always double-check before you invest and verify the investment with a state regulator.

6. You should be courteous to telemarketers and listen to their pitch.

True

False

Be wary of pushy telemarketers who try to pressure you into making immediate decisions, ask for personal information like credit card numbers, Social Security numbers or bank account numbers. You don’t have to talk with telemarketers. Just hang up!

Explanation

Be wary of pushy telemarketers who try to pressure you into making immediate decisions, ask for personal information like credit card numbers, Social Security numbers or bank account numbers. You don’t have to talk with telemarketers. Just hang up!

7. State insurance regulators can help you recover investment losses.

True

False

Insurance and securities investments are not insured. You should determine what degree of risk you are willing to take, knowing that legitimate investments are not guaranteed against market loss. In cases of fraud, sometimes a state regulator can help with restitution of a portion of the losses.

Explanation

Insurance and securities investments are not insured. You should determine what degree of risk you are willing to take, knowing that legitimate investments are not guaranteed against market loss. In cases of fraud, sometimes a state regulator can help with restitution of a portion of the losses.

8. Reporting cases of investment and insurance fraud won't help get your money back.

True

False

Your investment losses are not insured, but reporting cases of fraud will help protect others against the same schemes. Don’t let embarrassment or fear stop you from alerting others.

Explanation

Your investment losses are not insured, but reporting cases of fraud will help protect others against the same schemes. Don’t let embarrassment or fear stop you from alerting others.

Basic Trivia Quiz On Fraud!