Scams, Frauds and Ponzi Schemes

The video tutorial educates viewers on various financial scams, including phishing, multi-level marketing (MLM) scams, and unregulated investment schemes like Ponzi schemes. It emphasizes the importance of being cautious and skeptical of offers that seem too good to be true. The tutorial provides strategies to identify and protect oneself from these scams, such as verifying sources, recognizing red flags, and conducting thorough research. It also highlights the significance of reporting scams to authorities and educating others to prevent financial losses.

What is a common tactic used by scammers to trick individuals into sharing personal information?

• Providing job offers

• Sending phishing emails

• Offering free samples

• Offering free vacations

Which of the following is a key step in protecting yourself from scams?

• Verifying the source of emails

• Sharing personal information

• Responding quickly to offers

• Ignoring all emails

What is a distinguishing feature of a fraudulent MLM scheme?

• Focus on product sales

• Low initial fees

• Emphasis on recruiting new members

• High customer satisfaction

Which of the following is a warning sign of an MLM scam?

• Low initial investment

• Focus on customer service

• High emphasis on retail sales

• Pressure to recruit new members

What is a Ponzi scheme?

• A legitimate investment opportunity

• A type of phishing scam

• A fraudulent investment scam using funds from new investors to pay earlier ones

• A government-regulated investment scheme

What is a key risk associated with unregulated chit funds?

• Guaranteed high returns

• Lack of legal recourse in case of fraud

• Government oversight

• Low fees

Which of the following is a characteristic of unregulated investment schemes?

• Lack of proper documentation

• Promises of realistic returns

• Low-risk investments

• Registered under financial authorities