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Personal Finance: Types of Scams and Schemes

NC Personal Finance Objective 2.02

AB
scam/schemea plot designed to trick someone; a deception
illegalagainst the law
lies/lyingaccepting money for a stated purpose, then using it for a different purpose
concealing informationHiding information such as a physical address
pyramida scam that usually involves a "get rich quick" chain letter, sending money to others in order to receive money yourself
chain lettera letter asking one to send several letters with money in order to receive money in the mail yourself
high-pressure sales approachusing extreme tactics to persuade a consumer to buy
vague offersoffers that withhold certain details, expecting one to pay up front to get them
sweepstakes letterstates that one has won a valuable prize, but must pay a fee to claim it
lotteryprizes awarded by chance after purchase of a ticket; very small chance of winning
earn-money-at-home offersoffers that hinge on a consumer first purchasing something
winning bid at auctiona scam artist may notify you that you have the winning bid, ask for money, but never ship the item purchased
identity theftstealing one's personal information to commit theft or fraud


Business Teacher
West Johnston High School

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