How to Avoid Becoming a Victim of Affinity Fraud

How to Avoid Becoming a Victim of Affinity Fraud

Financial fraud can take many forms including Boiler Room scams, Pump and Dump Schemes, Ponzi and Pyramid schemes. Affinity Fraud ranks among the most predominant in operation globally, particularly within a close-knit society or community, and can thrive or even go unreported.

The United States Securities and Exchange Commission defines Affinity Fraud as ‘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’.

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