Question 1

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

Accepted Answer

A)   Action stage
B)   Discovery stage
C)   Trial stage
D)   Concealment stageE) None of the above
F) All of the above A

Question 2

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.E) A) and B)
F) A) and C) A

Question 3

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 fraudE) A) and C)
F) None of the above

Question 4

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.E) A) and D)
F) A) and C)

Question 5

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 informationE) B) and C)
F) B) and D)

Question 6

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.E) B) and C)
F) A) and D)

Question 7

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 regulationsE) A) and B)
F) A) and C)

Question 8

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 ActE) None of the above
F) All of the above

Question 9

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 ActE) A) and B)
F) All of the above

Question 10

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.E) All of the above
F) C) and D) A

Question 11

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 informationE) A) and B)
F) C) and D)

Question 12

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.E) None of the above
F) B) and C)

Question 13

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 ActE) A) and B)
F) B) and D)

Question 14

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%E) C) and D)
F) B) and D)

Question 15

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)   SkimmingE) A) and C)
F) A) and B)

Question 16

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 stageE) A) and D)
F) All of the above

Question 17

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 stageE) A) and D)
F) B) and D)

Question 18

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.E) A) and C)
F) A) and B)

Question 19

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)   EducationE) B) and D)
F) All of the above

Question 20

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 scamE) All of the above
F) A) and B)

Exam 15: Consumer Fraud

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

Correct AnswerverifiedA

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

Correct AnswerverifiedA

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

Correct AnswerverifiedShow Answer

Snake oil plans are plans that:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following statements defines shoulder surfing?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedA

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

Correct AnswerverifiedShow Answer

A clearinghouse scam involves a victim receiving:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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