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Threats to Financial Security

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					              Bellwork 1-1
l Describe  a time where either you or your
  family lost money.
l How would you protect against that loss in
  the future?
l List 2 other ways people can lose money.
Threats to Financial
     Security

         Unit 4
     Objective 2.02
   Types of Consumer behaviors
    that lead to financial losses
l Failure   to Plan:
  l Not comparing job offers carefully in light of
    expected expenses
  l Shopping without a list, which often leads to
    impulse buying
  l Spending without using a spending plan,
    which often leads to overspending
   Types of Consumer behaviors
    that lead to financial losses
l Failure   to Protect:
  l Making  personal information available that
    can lead to identity theft
  l Not securing life, health, and property to
    minimize risks of crimes and emergencies
  l Not following Internet safety practices
   Types of Consumer behaviors
    that lead to financial losses
l Failure   to be informed:
  l Not reading the fine print in sales
    agreements, product labels, contracts
  l Not researching sales offers in depth before
    making a commitment
  l Not separating facts from opinions in
    considering advertisements
   Types of Consumer behaviors
    that lead to financial losses
l Failure   to communicate:
  l Not  asking sufficient appropriate questions to
    inform financial decisions
  l Not discussing financial decisions with all
    parties/family members involved
  l Not taking enough time to make a careful
    decision because of sales pressure
  l Not saying “no” when needed
    Types of Fraudulent Scams that
        lead to financial losses
l   Lying---e.g., accepting money for a stated
    purpose, then using it for a different purpose;
    selling a product or service that will not perform
    as promised
l   Concealing information---e.g., sellers not willing
    to state their physical addresses
l   Deals that are too good to be true---e.g., a
    pyramid scheme, an illegal scheme that
    influences people to contribute money based on
    the false promise that they will get rich quickly;
    the pyramid collapses and money is lost, not
    gained
    Types of Fraudulent Scams that
        lead to financial losses
l   Chain letter---a variation of the pyramid scheme
    that involves postal correspondence, also illegal
l   High-pressure sales approaches---e.g., claiming
    the offer is only good for one day
l   Vague offers---e.g., expecting you to pay up
    front in order to receive full information about a
    product or service
             Scam Research Part I
l   You are to do online research for 3 out of the 6
    types of scams we discussed today:
    l   What is the catchy title?
    l   State the first sentence of article (Theme/Point of
        scam)
    l   ID key people, places, events of scam
    l   How to recognize scam
    l   How to avoid scam/potential losses
l   Put in PowerPoint and submit in Edmodo
                               Bellwork 1-2
l   Meredith placed photos of herself wearing skimpy clothing on an interactive website. Now
    she is searching for a job and keeps getting turned down for interviews. She suspects that
    others have seen her photos on the website. Meredith's behavior illustrates failure to:
     l A. be informed.
     l B. communicate.
     l C. plan.
     l D. protect.
l   Lisa did not take time to discuss with her husband her planned purchase of new bedroom
    furniture. When the furniture was delivered, her husband was not pleased with her choice.
    Lisa's behavior illustrates failure to:
     l A. be informed.
     l B. communicate.
     l C. plan.
     l D. protect.
l   Which illustrates concealing information? The man:
     l A. in the booth at the mall refused to tell where his business was located
     l B. said that the special price was only good for twenty-four hours.
     l C. said that the table linens were handmade.
     l D. told people he was collecting for the homeless, but kept the money for himself.
l   Which illustrates a vague offer expecting one to pay up front? The woman:
     l A. asked the shopper to share her email address and Social Security number.
     l B. avoided telling the shopper where her business was based
     l C. promised the shopper she'd tell her how to get the piano at no cost if she'd
         purchase piano lessons.
     l D. refused to answer certain questions the shopper asked
 Types of Fraudulent Scams that
     lead to financial losses
l Sweepstakes    letter---states that you have
  won a valuable prize, but need to pay a
  processing fee to claim the prize
l Lotteries---prizes awarded by chance after
  purchase of ticket; very small chance of
  winning
l Earn-money-at-home offers---on the
  condition that you purchase software,
  etc.; once paid for, nothing arrives
 Types of Fraudulent Scams that
     lead to financial losses
l Winning   bid in auctions---you pay the bid
  amount, but never receive the item
  bought
l Identity theft---stealing one’s personal
  information in order to commit theft or
  fraud
l Wide variety of other unsolicited online
  offers
  Communicating and Reporting
      Fraudulent Scams
l Communicating     with fellow consumers:
  l Use available communication media---live
    conversation, telephone, texting, emails, etc.
  l Be specific, include key details
  Communicating and Reporting
      Fraudulent Scams
l Reportingto government agencies and
 other consumer advocates:
  l Go  to the Federal Trade Commission (FTC)
    website; complete a Consumer Complaint
    Form
  l Call or visit the website of the National Fraud
    Information Center of the National Consumers
    League
  l Contact local consumer protection agency
  Communicating and Reporting
      Fraudulent Scams
l Reportingto government agencies and
 other consumer advocates:
  l Contact Better Business Bureau
  l Contact State Attorney General’s office
  l Contact the post office if you receive a
    fraudulent offer by mail
  l Contact the local media
         Scam Research Part II
l Go  to my website and find “Who has your
  info”
l Select any three links and for each:
  l What  is the name of the website?
  l What is the title of the topic?
  l Write 150 word minimum description
  l Write 50 word minimum reflection
l Put   in Word and submit in Edmodo
                                   Bellwork 1-3
l   Which illustrates a typical line from an earn-money-at-home offer?
     l A. "Mail $10 to three people, and in a few short days, you'll start receiving cash in the mail!“
     l B. "Purchase special software for only $500, start your own business, and earn quick profits.“
     l C. "Purchase your ticket now for a chance to win over $150,000.“
     l D. "You are the lucky winner. Pay only $50 handling fees and claim your cash prize up to $50,000.“
l   Which illustrates a typical line from a sweepstakes letter?
     l A. "Mail $10 to three people, and in a few short days, you'll start receiving cash in the mail!“
     l B. "Purchase special software for only $500, start your own business, and earn quick profits.“
     l C. "Purchase your ticket now for a chance to win over $150,000.“
     l D. "You are the lucky winner. Pay only $50 handling fees and claim your cash prize up to $50,000.“
l   Which illustrates reporting a fraudulent scam to a consumer government agency?
     l A. Calling your legislator to complain about telemarketers calling your home
     l B. Completing a complaint form and submitting it on the Federal Trade Commission website
     l C. Telling a postal clerk about an unwanted sweepstakes offer you received
     l D. Texting your mom to ask her if she's heard of a credit card company
l   Which illustrates using available media to communicate and protect others?
     l A. Calling your daughter to warn about scam artists going door to door
     l B. Sending in your sweepstakes response to get your name in the drawing
     l C. Telling your legislator your views about the state lottery
     l D. Texting your dad to please put some money into your bank account
       Scam Review Worksheets
l Go to the website under Unit 4, 2.02 and
  open “Scam Review Worksheets”
l Complete both worksheets and submit to
  Edmodo by the end of class.

				
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