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Financial Literacy: Outsmarting Investment Fraud Terms

Terms

Outsmarting Investment Fraud Terms and Definitions

Scam

a scheme to make quick money

Some people who bought real estate in Florida were part of a swampland scam.

Fraud

a practice that induces investors to make purchase decisions based on false information

Identity fraud can happen when a hacker gets into your computer.

Outsmarting

to get the better of someone or outwit

He tried outsmarting the government by not reporting all of his income on his tax form.

Taken In

gullible, naive

Many investors were taken in by Ponzi schemes.

Risk

the chance or probability of loss or injury

There is always some risk when investing in the stock market.

Victim

a person who is deceived or cheated

Many people have been victims of unscrupulous investment practices.

Perpetrators

culprits or people who commit crime

Perpetrators often use technology and persuasive tactics to commit illegal acts.

Con Artist

a person adept at lying, confidence games or swindling

The con artist convinced the elderly couple to sign over their life savings.

Defraud

to withhold money, rights or property from a person by cheating

The company tried to defraud its investors and went bankrupt.

Debunking

to expose a claim or assertion as false

He successfully invested in an IPO, debunking the myth that you can't make money in this economy.

Swindle

to cheat a person out of money or assets

He tried to swindle the young couple out of their life savings