Stopping Affinity Fraud in Your Community: How to Avoid Investment Scams That Target Groups

摘要

Affinity fraud refers to investment scams that prey upon members of identifiable groups, often religious or ethnic communities. The fraudsters who promote affinity scams frequently are - or pretend to be - members of the group. They often enlist respected leaders from within the group to spread the word about the scheme, by convincing those people that a fraudulent investment is legitimate and worthwhile. Many times, those leaders become unwitting victims of the fraudsters ruse. These scams exploit the trust and friendship that exist in groups of people who have something in common. Because of the tight-knit structure of many groups, it can be difficult for regulators or law enforcement officials to detect an affinity scam. Victims often fail to notify authorities or pursue their legal remedies, and instead try to work things out within the group. This is particularly true where the fraudsters have used respected community or religious leaders to convince others to join the investment.