What Is Affinity Fraud?
Many people are aware that identity theft is a crime that is growing at an alarming rate. But they are not aware of another crime that's growing at an even faster rate: affinity fraud. Affinity fraud targets members of identifiable groups, including religious, ethnic, senior, professional and other groups that have members with common interests, background or other factors in common. Affinity fraudsters take advantage of the familiarity among group members to entice them into putting their money into investment scams. Typically, the fraudsters who promote affinity scams are group members, claim to be group members, or enlist respected leaders within a group to spread the word about an investment "opportunity." Fraudsters are also using the Internet as a convenient vehicle to target groups with email spams.
Other Affinity FAQs
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Q:
What Is Employed In Affinity Fraud Scams?
A: Many times "Ponzi" or pyramid schemes are employed in affinity fraud scams where money invested by new investors is used to make payments to earlier investors, which … More -
Q:
How Can I Avoid Being A Victim?
A: Be very cautious if someone you know tells you they made a lot of money quickly from an investment. Many times the fraudster has paid this person a lot of money, so … More -
Q:
What If I Suspect Affinity Fraud?
A: Print out a complaint form (http://www.sec.gov/complaint/selectconduct.shtml) or write a letter to the U.S. Securities and Exchange Commission (SEC) at: SEC … More
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