background header

| Home | Contact Us | Jobs | E-Mail Notification | Glossary | Publications |

Economic Research and Data Banking Supervision & Regulation Financial Markets Group News Room Conferences & Events Community Development Education Resources Consumer Information About the Fed
Home | Consumer Information |

International Fraud Awareness Week — Consumer Fraud Quiz


The regulatory agencies involved in the Midwest Interagency Effort are sponsoring a quiz designed to test and increase consumer fraud awareness.

For more information or if you believe you have been victimized, please contact your local police and the appropriate regulatory agency.

Once you are finished, simply click "Submit Quiz" at the bottom of the page, and you will be provided with all the correct answers.

1. The most common give-away scam, in which a postcard arrives in the mail telling the receiver they have already won a prize such as a Lincoln Continental or cash, is known as:
  A. The "Bait and Switch"
  B. The "1-in-5"
  C. The "Fly and Buy"
  D. None of the above
2. In a home-based business scheme, the swindlers require a person to buy materials for assembly-at-home products, but the materials are essentially worthless or cheap.
  A. True
  B. False
3. Possibly the most widely broadcast offering in "information scams" is:
  A. Information on government job listings
  B. Information on wholesale crops or equipment
  C. Scholarship information
  D. None of the above
4. The best time to review your checking account and credit card statements for possible fraud (transactions that you did not authorize) is:
  A. Once a year in April while you are preparing your tax forms.
  B. At least twice a year, especially if there are lots of transactions.
  C. Every month after you receive your statements.
  D. When you get a notice from your bank that your checking account balance is negative (overdraft) or that you have exceeded the credit limit on your credit card.
  E. Never, because you pay money to subscribe to a service so this cannot happen to you.
5. The largest amount of insurance fraud occurs in the area of:
  A. Life insurance
  B. Health care
  C. Auto insurance
  D. None of the above
6. A person is involved in an auto accident but doesn't have insurance. To be reimbursed for the damages, the person gets insurance, waits a small amount of time, and then reports the vehicle as being in an accident. This person has committed an insurance scam known as _______.
  A. Churning
  B. Ditching
  C. Sliding
  D. Past posting
7. It is permissible to allow another person to "use" your insurance card for their personal benefit or medical treatment?
  A. True
  B. False
8. A financial advisor knows of a large order to sell a particular security. Knowing the order will certainly cause the stock price to fall, the advisor sells his shares of the stock at the higher price before he places the customer's order. This practice is called:
  A. Front running
  B. Churning
  C. Parking
  D. Conversion
9. One type of securities fraud involves brokers who engage in excessive trading of a customer account to create commissions for themselves and their firm. This type of fraud is called:
  A. Conversion
  B. Front running
  C. Parking
  D. Churning
10. After depositing a check or money order into your individual consumer account you are notified by the bank that the check/money order was fraudulent. You have already used the funds. Are you liable for the entire amount of the fraudulent check?
  A. True
  B. False
  C. Maybe
11. The commodity futures and options markets are very risky and you can lose your entire investment quickly. Which of the following is a warning sign of potential fraud?
  A. Get-rich-quick scheme
  B. Predictions or guarantees of large profits
  C. Promises of little or no financial risk
  D. All of the above
12. You haven't balanced your checkbook for a several months and while reviewing your statement from 4 months ago you discover that there are several forged checks - all from the same person - against your account. The bank claims that since more than 60 days have elapsed it doesn't have to do anything. Is this true?
  A. True
  B. False

 
Top of Page
contact us
Deanna Wilner
(312) 322-5097
     
   
 

Home | Contact Us | E-mail Notification | Glossary | Jobs | Privacy Policy | Legal Notices | Publications | RSS
Federal Reserve Bank of Chicago, 230 South LaSalle Street, Chicago, Illinois 60604-1413, USA. Tel. (312) 322-5322

Copyright 2008. All rights reserved.