Affinity fraud is a type of investment scam that targets members of certain groups, such as religious or ethnic communities, or the elderly. It usually involves a fake investment, or an investment where the scammer has left out important details. According to San Francisco consumer fraud attorneys, affinity fraud scams are often Ponzi or pyramid schemes.
Affinity fraud usually works by scammers pretending to be members of the group they are trying to defraud. This type of fraud exploits trust in groups of people, and those committing the fraud often try to get access to the group. They may enlist leaders in the group to unknowingly spread the word about a scam. The structure of these groups can often make it difficult for law enforcement to detect an affinity fraud scam, and victims often try to work things out within the group rather than report the fraud.
San Francisco consumer fraud attorneys say that the following tips can help you avoid becoming a victim of an affinity fraud scam:
-Do your research on the person’s background, and on the investment itself. Even if you know the person and believe they are trustworthy, keep in mind that they themselves may have been fooled into promoting a fraudulent investment.
-Don’t make investments based only on the recommendation of a member of an organization or group you belong to.
-Be wary of investments that promise guaranteed returns, or profits that seem too good to be true. No investment lacks risk, and promises of quick and easy profits are warning signs of fraud.
-Avoid any investment where you cannot get the details in writing. Fraudsters often avoid putting things in writing, and you should be suspicious if the investment is kept confidential or secret for any reason.
-Don’t allow yourself to be pressured or rushed into an investment opportunity. You should always make sure you have a chance to do your research before making any type of investment.
Evans Law Firm, Inc. handles consumer fraud, investment fraud, and financial fraud lawsuits. If you have been a victim of fraud, please contact Evans Law Firm, Inc. at 415-441-8669 or via email at email@example.com.