INVESTMENT SCAM TARGETS SIMILAR VICTIMS
Affinity Fraud Cons Individuals who Share Common Beliefs
HARRISBURG, Pa (July) – According to the Pennsylvania Securities Commission’s list of the “Not-So-Sweet 16” investment scams for 2006, affinity fraud has become of utmost importance to investors in the Commonwealth.
Affinity fraud con artists target a particular ethnic, political, or religious group, and then provide the adage: “Since I am like you and believe like you, you can believe in me and what I say”. Potential investors feel that since they already have heritage or beliefs in common with the person making the offer, they can trust them to make further decisions regarding their financial situation. Often, these scam artists build up a level of confidence within their chosen community that enables them to take advantage of individuals on a much larger scale.
Also targeted by con artists are senior citizens who often belong to a larger community of people with shared ethnicities or religions. Seniors are especially because they have a fixed income and often will invest a substantial portion of their retirement funds and life savings.
This investment scam works by substituting critical thinking and analysis for an appeal to a person’s emotional side. Investors feel that they can trust the con artist because they come from a similar background and therefore must have similar beliefs and values. Once such a level of trust is built up, the investor finds it difficult to back away from a financial agreement, even when they begin to have doubts about the investment.
Affinity fraud is a looming threat to seniors and investors throughout the State.
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