Question 1

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

Accepted Answer

The Fair Credit Billing Act limits consumers' liability for fraudulent credit card charges to $50 and allows for dispute resolution procedures.

Question 2

Which of the following statements correctly describes consumer fraud?

Accepted Answer

Consumer fraud refers to any fraudulent or deceptive act or practice that targets individuals as victims, such as phishing scams, identity theft, and Ponzi schemes. It does not necessarily involve a consumer committing fraud themselves, nor does it have to involve international borders or targeting organizations.

Question 3

How do fraudsters use "cookie" type software?

Accepted Answer

Fraudsters use "cookie" type software to gather personal and confidential information from consumers' hard drives, such as login credentials, credit card information, and browsing history. This information can then be used for identity theft or other fraudulent activities.

Question 4

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

Accepted Answer

The small thefts to test the stolen information fall under the trial stage, first dimensional actions.

Question 5

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

This scenario is describing the action stage of the identity theft cycle, where the fraudster takes action to carry out the theft by changing the victim's contact information to redirect credit card statements to the perpetrator. The verification stage involves obtaining information about the victim, while the trial stage involves testing the information to see if it works in conducting fraudulent activity. The discovery stage involves finding potential victims and gathering identifying information.

Question 6

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

Accepted Answer

The answer of Which stage is considered to be the...

Question 7

Which of the following is NOT an action to minimize your risk of identity theft?

Accepted Answer

Using Social Security number on visiting cards can increase the risk of identity theft, so it is not an action to minimize the risk. Opting out of pre-approved credit cards, shredding mail containing sensitive information, and using strong passwords and changing them often are all effective actions to minimize the risk of identity theft.

Question 8

Which of the following is NOT a symptom of potential investment scams?

Accepted Answer

Promise of returns comparable to those of treasury bonds is not a symptom of potential investment scams. Generally, it is not uncommon for some legitimate investments to promise returns comparable to treasury bonds. However, one should always conduct thorough research and due diligence before investing in any opportunity. A, B, and C are all common red flags that may indicate an investment scam.

Question 9

Which trial stage dimensional actions are the riskiest for the identity thief?

Accepted Answer

Third dimensional actions are the riskiest for the identity thief because they involve direct, illegal interaction with the victim's assets or personal information, such as stealing a wallet or hacking into personal accounts, which have a high risk of detection and legal consequences.

Question 10

TransUnion, Equifax, and Experian are examples of what type of agencies?

Accepted Answer

TransUnion, Equifax, and Experian are all credit reporting agencies that collect and provide information on individuals' credit histories to lenders and other authorized parties.

Question 11

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

Accepted Answer

Phishing involves the use of the internet to steal important information by tricking people into giving away their personal information through fake websites, emails or messages. The other options involve physical means of stealing information.

Question 12

Which is the primary agency responsible for helping victims of identity theft?

Accepted Answer

The Federal Trade Commission (FTC) is the primary agency responsible for helping victims of identity theft. They provide resources and assistance for reporting and recovering from identity theft incidents.

Question 13

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

Accepted Answer

The Gramm-Leach-Bliley Act includes provisions that allow consumers to opt out of having their personal financial information sold to non-affiliated third parties.

Question 14

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

Accepted Answer

The Family Education Rights and Privacy Act of 1974, also known as FERPA, is a federal law that protects the privacy of student education records. It states that no agency that receives federal funding may disclose privacy information about individuals without the individual's consent, except in limited circumstances.

Question 15

Which of the following statements defines shoulder surfing?

Accepted Answer

Shoulder surfing is the act of a criminal watching someone from a nearby location as they enter sensitive information, such as credit card numbers or passwords, on their phone or computer. This information can then be used for identity theft or other malicious purposes. Option A describes physical intimidation, Option B describes stalking, and Option C describes burglary.

Question 16

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

Accepted Answer

Identity theft is the most common type of consumer fraud, affecting millions of people each year. It involves stealing personal information, such as Social Security numbers or credit card numbers, to make fraudulent purchases or obtain loans under someone else's name.

Question 17

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

Accepted Answer

Destroying personal property, such as a home or car, is not a common method of identity theft. The other three choices, filing for bankruptcy under the victim's name, opening new bank accounts in the victim's name, and changing a victim's mailing address, are all common methods of identity theft.

Question 18

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

Accepted Answer

The answer of Which of the following is a true...

Question 19

What is the term for when fraudsters contact potential identity theft victims and act as a representative of a business to verify previously gathered information?

Accepted Answer

The term for when fraudsters contact potential identity theft victims and act as a representative of a business to verify previously gathered information is called pretexting. Trashing refers to the act of rummaging through someone's trash to find personal information, mail stuffing involves filling someone's mailbox with unwanted or fraudulent mail to obtain personal information, and skimming involves stealing credit or debit card information through a device placed on a card reader.

Question 20

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

Accepted Answer

The answer of Which of these is a second dimensional...

Quiz 15: Consumer Fraud