Spot a Personal Loan Scam Quiz

Results

#1. What is the estimated annual loss due to personal loan scams in the United States?

$500 million

$700 million

$900 million

$1 billion

$3.8 billion

#2. What is the primary aim of the guide mentioned in the article?

Outlining investment opportunities

Identifying potential scams

Explaining credit card usage

Discussing financial regulations

Exploring online banking options

#3. According to the article, what is the interest rate typically associated with personal loans?

10%

14%

20%

25%

#4. Which of the following is NOT a common purpose for which personal loans are used, as mentioned in the article?

Home renovation

Debt consolidation

Medical expenses

Education expenses

Vacation expenses

#5. What is a significant advantage of obtaining a personal loan from online lenders, as mentioned in the article?

Lower interest rates

Higher credit score requirements

More collateral required

Less documentation needed

Limited loan options

#6. Which organization received over 1.1 million fraud reports last year, as per the article?

Federal Reserve

Federal Bureau of Investigation (FBI)

Federal Trade Commission (FTC)

Internal Revenue Service (IRS)

Securities and Exchange Commission (SEC)

#7. What is the primary characteristic of cloud-based personal loan scams?

High interest rates

Collateral requirement

Minimal documentation

Upfront fees

Multiple loan options

#8. Which scam involves scammers sending emails containing links to verify bank account login information?

Cloud-based personal loan scam

Phishing campaign

Bank wire scam

Credit card fraud

dentity theft

#9. How do scammers execute the bank wire scam?

By offering high-interest rates

By requesting upfront fees

By promising minimal documentation

By initiating a wire transfer and then asking for the money back

By providing fake physical addresses

#10. What is a red flag associated with legitimate lenders, according to the article?

High interest rates

Upfront fees

Unregistered status

Physical address provided

Unsolicited emails

#11. Which of the following is NOT listed as a key takeaway from the article?

Be wary of "no credit check" promises

Always click on links in emails from legitimate companies

Avoid upfront fees

Verify state registration of lenders

Report suspicious activity to the FTC

#12. According to the article, what percentage of personal loans are used to pay off credit card debt?

One-third

Half

Two-thirds

Three-quarters

All

#13. What is the approximate interest rate mentioned in the article for loans promising “no credit check”?

10%

15%

20%

25%

35%

#14. What is the primary reason for scammers requesting upfront fees, as explained in the article?

To verify bank accounts

To cover administrative charges

To process loan applications

To provide insurance

To guarantee loan approval

#15. What is the suggested action if you receive an email suspected to be part of a phishing campaign, according to the article?

Click on the provided link

Contact customer support immediately

Open attachments to verify the content

Respond to the email with personal information

Delete the email and visit the company's website directly

#16. How can scammers gain access to sensitive information in a phishing campaign?

By sending physical mail

By calling the victim

By requesting bank account details

By clicking on links or opening attachments

By meeting the victim in person

#17. Which warning sign suggests that a lender might be unregistered, according to the article?

Absence of upfront fees

Presence of a physical address

Inclusion of a contact number

Inclusion of a state registration number

Offer of low-interest rates

#18. According to the article, what is the potential consequence of clicking on links or opening attachments in unsolicited emails?

Enhanced online security

Increased credit score

Identity theft

Guaranteed loan approval

Discount offers

#19. Which aspect of an email sender’s address might indicate a phishing attempt, according to the article?

Domain name matching the company

Use of Hotmail or Gmail addresses

Presence of spelling errors

Inclusion of the recipient's name

Proper grammar and punctuation

#20. If a legitimate lender charges an origination fee of 3% on a personal loan of $10,000, how much will the borrower receive after the fee is deducted?

$9,700

$9,800

$9,400

$9,300

$9,000

#21. If a scammer convinces a victim to wire $2,500 as a “verification fee” for a promised personal loan, but the wire transfer incurs a fee of 3% from the victim’s bank, how much money does the scammer actually receive?

$2,575

$2,550

$2,475

$2,400

$2,325

#22. What is a suggested method to verify the legitimacy of a lender’s physical address, as mentioned in the article?

Call the provided number

Visit the lender's office in person

Check if the address is listed on Google Maps

Verify state registration

Cross-check with state records

#23. Mark takes out a personal loan of $30,000 at an interest rate of 10% per annum compounded quarterly. If he makes quarterly payments of $2,000, how many quarters will it take to pay off the loan?

15 quarters

20 quarters

25 quarters

30 quarters

35 quarters

#24. A borrower takes out a personal loan of $50,000 at an interest rate of 8% per annum compounded quarterly. If the borrower chooses to make monthly payments, how much will the monthly payment be, and how many months will it take to pay off the loan?

Monthly payment: $500, Duration: 130 months

Monthly payment: $600, Duration: 110 months

Monthly payment: $700, Duration: 90 months

Monthly payment: $800, Duration: 80 months

Monthly payment: $900, Duration: 70 months

#25. If a scammer convinces a victim to pay an upfront fee of $1,000 for a promised personal loan, but the scammer disappears after receiving the payment, and the victim’s bank charges a fee of $20 for a returned check due to insufficient funds, how much money does the victim lose in total?

$1,000

$1,020

$1,040

$1,060

Finish