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 Georgia, affinity fraud is considered a serious criminal offense. This type of fraud specifically targets members of identifiable groups, often exploiting the trust within religious, ethnic, or age-based communities. Georgia law, in line with federal regulations, prohibits deceptive practices and fraudulent schemes, including Ponzi and pyramid schemes. Under the Georgia Securities Act of 1973, individuals or entities that engage in fraudulent investment activities can face severe penalties, including fines and imprisonment. The Act requires securities to be registered and outlaws fraudulent and deceitful practices in the sale of securities. If community leaders are involved in promoting these schemes, they too can be held liable if they knowingly propagate the fraud. Victims of affinity fraud in Georgia are encouraged to report the crime to the Georgia Secretary of State's Securities Division, which is responsible for enforcing securities laws, and to law enforcement agencies. Additionally, victims may seek civil remedies through the courts to recover their losses.