After Bernie Madoff made off with more than $60 billion in fraudulent funds, investment scams received a lot of high-profile attention in the media. There is, however, a wide array of confidence schemes that financial shysters use to defraud starry-eyed investors. Take this quiz to find out if you can tell the difference between a solid investment and a shady risk.
Question 1 of 10
Why are thinly traded stocks often used as tools in investment scams?
Question 2 of 10
How much money do Americans lose to scams every year?
Question 3 of 10
What is the defining feature of an affinity scam?
Question 4 of 10
What product did Charles Ponzi sell in his investment scheme?
Question 5 of 10
What is the defining feature of a Ponzi scheme?
Question 6 of 10
What type of scam promotes investments in elite overseas financial institutions that don't actually exist?
Question 7 of 10
Why does the urgency and scarcity concept within a con work?
Question 8 of 10
What is a prospectus?
Question 9 of 10
What type of investment offers deserve extra caution?
Question 10 of 10