Affinity frauds target members of identifiable groups, such as the elderly, or religious or ethnic communities. The fraudsters involved in affinity scams often are—or pretend to be—members of the group.

Fraudsters may enlist respected leaders from the group to spread the word about the scheme, convincing them it is legitimate and worthwhile. Many times, those leaders become unwitting victims of the fraud they helped to promote.

These scams exploit the trust and friendship that exists in groups of people. Because of the tight-knit structure of many groups, outsiders may not know about the affinity scam. Victims may try to work things out within the group rather than notify authorities or pursue legal remedies.

Affinity scams often involve Ponzi or pyramid schemes where new investor money is used to pay earlier investors, making it appear as if the investment is successful and legitimate.

In Florida, affinity fraud is considered a serious criminal offense. This type of fraud specifically targets members of identifiable groups, often exploiting the trust within these communities. Florida's securities laws, as outlined in Chapter 517 of the Florida Statutes, prohibit fraudulent investment activities, including Ponzi and pyramid schemes, which are common in affinity fraud cases. Violations of these laws can lead to both civil and criminal penalties, including fines and imprisonment. Additionally, the Florida Deceptive and Unfair Trade Practices Act (FDUTPA) provides a civil cause of action for deceptive practices, which can include affinity fraud. Victims of affinity fraud in Florida are encouraged to report the fraud to the Florida Office of Financial Regulation or the Securities and Exchange Commission (SEC). These agencies can investigate and prosecute the fraudsters. The involvement of community leaders in promoting these schemes, even unwittingly, can also have legal consequences. It is important for individuals to perform due diligence before investing and to be skeptical of investments that promise high returns with little or no risk, especially those promoted within a tight-knit community.