Social media investing fraud Quiz

1. What is a common tactic used by fraudsters to make their schemes appear legitimate on social media?

A. Offering high returns with no risk B. Creating sites and accounts that look legitimate C. Promising insider information

2. What should investors do before making an investment decision based on unsolicited emails or message board postings?

A. Trust the information if it looks professional B. Research the company's business and financial statements C. Invest quickly before the opportunity is lost

3. Which of the following is a red flag for investment fraud?

A. Guaranteed high returns B. Low-pressure sales tactics C. Detailed financial disclosures

4. What is 'affinity fraud'?

A. A scam targeting people with similar interests or backgrounds B. A legitimate investment opportunity shared among friends C. A type of fraud that involves fake financial statements

5. How can investors protect themselves when using social media for investment purposes?

A. Share personal information freely to build trust B. Be mindful of privacy and security settings C. Rely on testimonials from online forums