Scam Prevention Guide

Investment Scams Quiz

Investment scams occur when a scammer sends emails or other messages purporting to be from reputable companies to induce individuals to reveal personal information, such as passwords and credit card numbers. Do you have the information you need to protect yourself from phishing scams? Take our quiz!

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1. Which of the following are “red flags” that you are experiencing an investment scam?

They pressure you to invest immediately or risk missing out (limited time offer). They promise a guaranteed return on investment. They claim to be from a reputable firm. They tell you everyone’s making money. Don’t miss out. All of the above.

Almost! Scammers pressure you to make a quick decision so you don’t have time to discuss it with others or second guess the decision. But this isn’t the only red flag. Read the others.

Almost! No investment can guarantee you a return. But this isn’t the only red flag. Read the others.

Almost! Don’t take their word for it. Check their registration to make sure they’re legitimate (FINRA’s BrokerCheck is a free tool you can use). But this isn’t the only red flag. Read the others.

Not quite. Scammers encourage you to invest by telling you that everyone else is doing it and making money. It’s called social consensus. But this isn’t the only red flag. Read the others.

Correct! All of these are red flags for investment scams.

2. True or False? A celebrity endorsement is a good way to tell that an investment is legitimate.

True False

Incorrect. Scammers often impersonate celebrities to encourage people to make the investment.

Correct! Scammers often impersonate celebrities to encourage people to make the investment.

3. What is the best way to tell if you are working with a legitimate broker?

Get a referral from a friend or family member Check their registration Ask for professional references Ask about their rate of return on investments.

Sorry, incorrect. While talking to others is important, before you make any investment, make sure you’re dealing with a legitimate broker by checking their registration. FINRA’s BrokerCheck is a free tool that is available for you.

Correct! Always make sure you are dealing with a broker who is licensed and in good standing. FINRA’s BrokerCheck is a free tool that is available for you.

Incorrect. Before you make an investment, make sure you’re dealing with a legitimate broker by checking their registration with a third-party source. FINRA’s BrokerCheck is a free tool that is available for you.

Incorrect. Before you make any investment, make sure you’re dealing with a legitimate broker by checking their registration. FINRA’s BrokerCheck is a free tool that is available for you.

4. A friend encourages you to invest in a new cryptocurrency and says that you’re guaranteed to double your investment in 60 days. What do you do?

Invest, since the advice is coming from a close friend. Invest half of the amount and see how it does before investing the remainder Turn down the opportunity.

Incorrect. Scammers impersonate your friends online to get you to take action. No investment comes zero risk, and nothing is guaranteed.

Correct! No investment comes with zero risk, and nothing is guaranteed. Also, scammers impersonate your friends to urge you to make the investment.

5. Which activity has the least amount of risk?

Performing a web search for “great investment opportunities.” Investing with a certified financial planner Doing banking and investment work on public Wi-Fi Investing with someone you know through your church or professional association.

Incorrect. Scammers offer what they claim are attractive investment opportunities. Before you make any investment, make sure you are working with a registered broker. FINRA’s BrokerCheck is a free tool available to you.

Correct! Before you make any investment, check the background of the broker/organization. FINRA’s BrokerCheck is free to use.

LEARN MORE. CHECK OUT FINRA BROKER CHECK.

Incorrect. Never share personal information if you’re using public Wi-Fi. People can see your information.

Incorrect. Scams can be perpetrated through networks of friends and acquaintances. Before you make any investment, make sure you are working with a registered broker. FINRA’s BrokerCheck is a free tool available to you.

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