Affinity Fraud
What Does Affinity Fraud Mean?
A type of investment scam in which a con artist targets members of an identifiable group based on things such as race, age, religion, etc. The fraudster either is, or pretends to be, a member of the group. Often the fraudster will be promoting a ponzi or pyramid scheme.
Investopedia explains Affinity Fraud
This type of scam leverages and exploits the inherent trust within the group. For example, a fraudster may target a specific religious congregation. Oftentimes, the person will try to acquire the help of the leader of the group to spread the word about the investment scheme. In this instance, the leader becomes an unwitting pawn in the fraudulent scheme.
Related Links
- The Biggest Stock Scams Of All Time - Where there is money, there are swindlers. Protect yourself by learning how investors have been betrayed in the past.
- Online Investment Scams Tutorial - To bamboozle someone out of their money is an age-old ruse. Learn about some of the gimmicks modern-day swindlers use and avoid becoming a statistic.
- What Is A Pyramid Scheme? - Considering joining an "investment club" that promises phenomenal returns on your sign-up fee? Read this article and think again!
