Affinity Fraud

Affinity Fraud
A type of investment scam in which a con artist targets members of an identifiable group based on things such as race, age, religion, etc. The fraudster either is, or pretends to be, a member of the group. Often the fraudster will be promoting a ponzi or pyramid scheme.

This type of scam leverages and exploits the inherent trust within the group. For example, a fraudster may target a specific religious congregation. Oftentimes, the person will try to acquire the help of the leader of the group to spread the word about the investment scheme. In this instance, the leader becomes an unwitting pawn in the fraudulent scheme.

Investment dictionary. . 2012.

Look at other dictionaries:

  • Affinity fraud — includes investment frauds 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 …   Wikipedia

  • Affinity Fraud — When scam artists target a specific social, religious, or ethnic group. The allegations surrounding Wall Street financier Bernard L. Madoff’ssupposed $50 billion Ponzi scheme have highlighted the issue of affinity fraud, described by the U.S.… …   Dictionary of unconsidered lexicographical trifles

  • affinity fraud — noun Fraud whose victims are susceptible because they trust the perpetrator as a member of their circle …   Wiktionary

  • Fraud — Criminal law Part of …   Wikipedia

  • Bernard Madoff — Madoff redirects here. For other people with the same surname, see Madoff (surname). Bernard Lawrence Madoff US Department of Justice photograph, 2 …   Wikipedia

  • Operation Broken Trust — Operation Broken Trust, the largest investment fraud sweep by the Federal government of the United States, was conducted between August 16 and December 1, 2010.[1] The stated purpose of the operation was to root out and expose investment scams… …   Wikipedia

  • Salim Damji — is a convicted fraud artist who defrauded millions of dollars in an affinity fraud. The money came mostly from relatives and members of the closely knit Ismaili community. His $75 million scam was among the largest in Canadian history.Salim Damji …   Wikipedia

  • Daniel Bonventre — (born c. 1944) is one of five former Madoff employees charged in the Madoff investment scandal.[1][2] He had worked as one time company director of operations and as an accountant for Madoff since the 1960s. He was arrested on February 25,… …   Wikipedia

  • Slavery reparations scam — The Slave Reparations Act (also called the Slavery Reparation Tax Credit, Black Tax Credit or Black Inheritance Tax Refund) is a tax fraud related to the concept of reparations for slavery. The scam claims that filers can receive $5,000 or… …   Wikipedia

  • Credit card — Personal finance Credit and debt Pawnbroker Student loan Employment contract Salary Wage Empl …   Wikipedia