OK - we have spent the last few posts discussing what is affinity fraud and how it works. Like any other type of fraud, the most important question is: how can affinity fraud be prevented?
The first way to defeat affinity fraud is the most basic lesson - don't let your guard down just because someone is appealing to the group as a member of the group or through a group leader. Group leaders and group members, unfortunately, cannot be held to a different level of trust than other individuals. The same type of skepticism and doubt should be applied to investment schemes within the group.
Further, if a member of the group that is offering an investment cannot take the time to reduce the offer to writing for further analysis, this should be a clear red flag.
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.
The first way to defeat affinity fraud is the most basic lesson - don't let your guard down just because someone is appealing to the group as a member of the group or through a group leader. Group leaders and group members, unfortunately, cannot be held to a different level of trust than other individuals. The same type of skepticism and doubt should be applied to investment schemes within the group.
Further, if a member of the group that is offering an investment cannot take the time to reduce the offer to writing for further analysis, this should be a clear red flag.
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.
No comments:
Post a Comment