Do you have an affinity to want to help others, even if they are actually trying to scam your Baie-Comeau religious organization. You cannot be too safe, so follow these tips below.
Affinity fraud is a type of investment scam that targets members of a specific demographic. Targeted groups can include the elderly, ethnic groups, and religions. Perpetrators may attempt to relate to or exploit characteristics common to the demographic. They attempt to portray themselves as members of this group or people who can relate to the members of the group in order to gain trust and eventually money. Due to the close structure of many groups, it can be difficult for regulators or law enforcement officials to detect an affinity scam. Victims often fail to notify authorities or pursue their legal remedies, and instead try to work things out within the group.
Tips to avoid affinity fraud include:
- Obtain a prospectus or other form of written information that details the risks in the investment and procedures to get your money out.
- Ask for professional advice from a neutral outside expert not in your group, such as an accountant, attorney or financial planner, to evaluate the investment.
- Before investing any money, call your local securities agency to learn more about the salesperson and firm. Ask if they are registered to do business in the state, and whether the investment is allowed to be sold. If the salesperson or the firm is not registered, inquire further.
If you have lost money in an affinity fraud scheme or have information about one of these scams, please contact the U.S. Securities and Exchange Commission's (SEC) Complaint Center. You may also wish to view general information on reporting fraud.
For more information, please visit the SEC's affinity fraud web page.