What is an Affinity Fraud?
… Affinity fraud refers to investment scams that prey upon … http://www.sec.gov/investor/pubs/affinity.htm http://www.sec.gov/investor/pubs/affinity.htm Rate this result0 • Affinity – Definition of Affinity by Webster Dictionary Affinity – Definition of Affinity is presented by 1913 online Webster’s Dictionary. … Solomon made affinity with Pharaoh. http://www.webster-dictionary.net/definition/Affinity http://www.webster-dictionary.
Affinity fraud refers to different scams perpetuated on a group of people who are specifically connected to each other by race, religious background, occupation, family, gender or age. The person or people perpetuating affinity fraud exploit these connections, and in using the commonalities of a particular group, create a scheme that will be most appealing to that group. The end goal of the criminal is to steal money from participants, and it’s an unfortunate and frequent occurrence in many parts of the world. There are varied types of affinity fraud. For instance, a criminal might target the families of people who have died in the armed services. He then might solicit donations on behalf of a monument to include all their names. Naturally, such a monument will never be built. This type of affinity fraud has occurred pretty frequently in the US, especially after or during wars. Criminals play on the emotional nature of this request and can take thousands of dollars in donations for pho
Affinity fraud refers to investment scams that prey upon members of identifiable groups, such as religious or ethnic communities, the elderly, or professional groups. The fraudsters who promote affinity scams frequently are – or pretend to be – members of the group. They often enlist respected community or religious 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 fraudster’s 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
Affinity fraud refers to investment scams that prey upon members of identifiable groups, such as religious or ethnic communities, the elderly, or professional groups. The fraudsters who promote affinity scams frequently are – or pretend to be – members of the group. They often enlist respected community or religious 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 fraudster’s ruse.
