It should be obvious now that affinity fraud is difficult to stop because it takes advantage of very real human emotions. When a person is a part of a group, whether it be a religious group, social group, recreational group, etc., there is a level of trust between the individuals. After all, the person essentially wants to spend time with the other members of the group, otherwise they would not be there in the first place. Therefore, when a person is committing affinity fraud, many of the doors are already open for him since all he needs to do is simply take advantage of the group connections which already exist.
This means that a common thread in many of these schemes is that investors within the group do not do any research (or little research) on their own concerning the "investments" that are made available to group members through the fraudster. Sad to say, but it is clear that a fraudster who infiltrates a group to commit affinity fraud is already "pre cleared" to take advantage of group members.
NOTE - information in this article is taken from an article in the March/April 2013 issue of Fraud Magazine by Frank Perri and Richard Brody.
This means that a common thread in many of these schemes is that investors within the group do not do any research (or little research) on their own concerning the "investments" that are made available to group members through the fraudster. Sad to say, but it is clear that a fraudster who infiltrates a group to commit affinity fraud is already "pre cleared" to take advantage of group members.
NOTE - information in this article is taken from an article in the March/April 2013 issue of Fraud Magazine by Frank Perri and Richard Brody.
NOTE: THE INFORMATION IN THIS BLOG IS NOT LEGAL ADVICE NOR IS IT INTENDED TO BE LEGAL ADVICE. IF THE READER HAS ANY LEGAL QUESTIONS, PLEASE REFER TO AN ATTORNEY.
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