Comparison Shopping, Identity Theft, Scams & Fraud

Which of the following is the most effective way to ensure you are getting the best deal when purchasing a product online?

• Only compare the prices at large, well-known retailers.

• Ignore shipping fees and focus solely on the product price.

• Consider the total cost, including shipping, return policies, and product reviews.

• Buy from the retailer with the cheapest price, regardless of customer feedback.

Answer explanation

When comparison shopping, it’s important to factor in all costs (like shipping) and other considerations (such as product reviews and return policies) to ensure you are getting the best deal.

Which of the following is the most reliable way to minimize the risk of identity theft when accessing public Wi-Fi?

• • Always use a mobile hotspot instead of public Wi-Fi for sensitive transactions.

• • Avoid logging into any account while connected to public Wi-Fi.

• • Use only websites with "http" in the URL when making purchases.

• • Enable Bluetooth to share files across Wi-Fi networks.

Answer explanation

Mobile hotspots are much more secure than public Wi-Fi. Public networks can expose personal information to hackers if sensitive data is entered.

If you are offered an online investment opportunity that promises unusually high returns with little risk, what should your first action be?

• • Immediately invest to take advantage of the "limited time offer."

• • Conduct research on the company and ask for official documentation.

• • Take the opportunity without concern, as it might be a rare opportunity.

• • Ignore the opportunity and move on to the next email in your inbox.

Answer explanation

High returns with low risk are a classic red flag of a scam. It’s important to research thoroughly and ask for official documentation before investing.

Which of the following actions would best protect a consumer from falling victim to an online scam involving fake job offers?

• • Immediately respond with personal information to secure the job offer.

• • Research the employer and job offer, and verify if it’s listed on a reputable job board or company website.

• • Accept the job and provide any requested payment for "training materials" before starting work.

• • Post the job offer on social media to get others' opinions before acting.

Answer explanation

Researching the job offer, confirming its legitimacy, and ensuring it's posted on a reputable site are critical steps in avoiding job scams.

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…

• 1. Place an extended fraud alert or security freeze on his credit 

• 1. File an identity theft report with the Federal Trade Commission 

• 1. Enable Two-Factor Authentication on his accounts for added security 

• 1. Wait for 90 days before contacting law enforcement

Answer explanation

Always contact law enforcement immediately after you realize you are victim of identity theft. Remember, you can report identity theft, as well as scams, to the Federal Trade Commission (FTC).

A person regularly checks their bank account for unauthorized charges and notices an unfamiliar $50 transaction. They report it to the bank, which confirms that the transaction was made using their credit card number. What should be their next step?

• • Request a refund from the merchant who made the charge.

• Ignore the transaction if it is only a small amount and does not appear again.

• • Only dispute the charge if it exceeds $100, as small charges are unlikely to indicate fraud.

• • Cancel the card, dispute the charge, and consider placing a fraud alert or freeze on their credit.

Answer explanation

Canceling the card and disputing the charge ensures no further fraudulent activity can occur, while placing a fraud alert or freeze on their credit protects their personal information moving forward.

You are comparing two gym memberships. Gym A charges $40 per month with a 12-month commitment and includes unlimited access to classes. Gym B charges $30 per month with no commitment but only allows limited access to classes. Which of the following factors would most impact your decision if you plan to attend multiple classes per week?

• • Choose Gym B because it has no long-term commitment, and you can cancel at any time.

• • Choose Gym A because its monthly fee is higher, which typically indicates better facilities.

• • Choose Gym A because it provides unlimited access to classes, making it more cost-effective for frequent attendance.

• • Choose Gym B because the cost is lower, and you can pay for individual classes if needed.

Answer explanation

If you plan to attend multiple classes per week, Gym A’s unlimited class access would provide better value, despite the 12-month commitment.

You receive a letter from your bank notifying you that your account information may have been compromised in a data breach. Which of the following is the best way to protect yourself from potential identity theft?

• Ignore the letter because banks generally provide secure services.

• • Contact the bank, change your passwords, and monitor your credit.

• • Close your account and open a new one with a different bank.

• • Wait for further instructions from the bank before taking action.

Answer explanation

Immediate action, such as changing passwords and monitoring your credit, is necessary to protect yourself after a potential data breach.

You receive an unexpected call claiming to be from your insurance company, asking for sensitive personal information to "verify your identity." How should you respond?

• • Provide the requested information, as it seems like a routine check.

• • Agree to the request but provide minimal information, only what you feel comfortable with.

• • Ignore the call and wait for the company to contact you again.

• • Hang up and contact the insurance company directly to verify the request.

Answer explanation

Scammers often impersonate legitimate organizations. It’s always best to contact the company directly through official channels rather than giving sensitive information over the phone.

How might freezing your credit protect your personal information?

• 1. Your credit information is locked for ten years but can be accessed by auto and mortgage lenders 

• 1. All of your credit cards are canceled and removed from your credit file  

• 1. Your credit information is blocked to help prevent someone from opening accounts in your name 

• 1. Your credit report continues to include past credit information but does not include new accounts you open 

Answer explanation

The earlier you do this, there is less damage that can be done by an identity thief.