affinity fraud


Also found in: Wikipedia.

Affinity Fraud

A type of fraud where a con artist targets members of a particular group. For example, a con artist may mail donation solicitations to political activists asking for money to pressure the government for a certain cause, when the donations, in fact, go to the con artist himself. Likewise, the con artist may convince members of a religious or ethnic group to donate to a made-up organization to protect the rights of the group. See also: Pyramid Scheme.

affinity fraud

Investment scams that target members of identifiable groups, including elderly, ethnic, professional, and religious groups. Perpetrators of affinity fraud are often either members of the targeted group or individuals who enlist the assistance of leaders in order to exploit the trust of members of the group. See also pyramid.

Affinity fraud.

Affinity fraud occurs when a dishonest person plays on your affiliation with a group -- such as a house of worship, social club, support group, charity, or veterans' group -- as a way to win your confidence in order to sell you something worthless or trick you into handing over cash.

The scammer may actually be a member of the group or may just pretend to be.

Affinity fraud is one the most difficult scams to protect yourself against because being suspicious of colleagues can undermine the reason you belong to a group.

References in periodicals archive ?
Affinity Fraud. Con artists frequently prey on investors in closely knit religious, political, professional, ethnic or social groups, causing them to let their guard down and trust the legitimacy of an investment.
I cannot tell you the number of warrants I signed in state court on affinity fraud cases [which are the product of online "relationships"].
Affinity fraud refers to investment scams that prey upon members of identifiable groups such as religious or ethnic communities, the elderly or professional groups.
(67) The SEC characterizes such acts as affinity fraud. "Affinity fraud refers to investment scams that prey upon members of identifiable groups, such as religious or ethnic communities, the elderly, or professional groups." (68) "The SEC has investigated and taken quick action against affinity frauds targeting a wide spectrum of groups." (69)
State securities regulators reported 59 formal enforcement actions involving affinity fraud in 2016.
Affinity fraud refers to investment schemes that prey upon members of identifiable groups, such as religious or ethnic communities, the elderly, or professional groups.
This deceptive advertising should be sufficient for the international scammer to be able to make referrals and share fees with the local Florida attorney in a scheme based on affinity fraud. In closing, these new relaxed ad rules can become un relajo or a joke.
This is especially true when it comes to guarding against affinity fraud, which involves fraud perpetrated against members of religious or social groups, which often contain high numbers of seniors.
Despite the imprisonment of Southwick and other con men like him, much has remained the same Utah is still fertile soil for all sorts of white-collar crimes and, especially, for affinity fraud.
"This case offers an example of the damage affinity fraud can cause," Galvin is quoted as saying in the release.
Affinity fraud causes the same economic harm as any financial fraud.