Alabama Securities Commission issues advisory
MONTGOMERY, Ala. (WTOK) – The Alabama Securities Commission has issued an advisory to help investors better understand a type of scam known as ‘affinity fraud’ and how to help avoid becoming a victim.
Affinity fraud occurs frequently at places of worship, in tight-knit ethnic or immigrant communities, at country clubs, in professional organizations, online forums, and anywhere people gather around a shared belief, interest or goal.
That shared interest creates camaraderie and trust among the members. Fraudsters join these groups and use the trust they build to convince members to invest in schemes or phony business projects to line their own pockets, leaving investors broke.
The advisory provides an overview of affinity fraud and how it works, provides an example and discusses the steps investors can take to minimize their risk of falling victim to affinity fraud.
Before making any financial decisions, ask questions, do your homework and call the ASC at 1-800-222-1253 to check out the registration and background of the person making the offer and registration of the product offered or to report suspected securities fraud.