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 Idaho, affinity fraud is considered a serious criminal offense. The state's securities laws, found in the Idaho Uniform Securities Act, prohibit fraudulent and deceptive practices in connection with the offer, sale, or purchase of securities. Affinity fraud falls under these prohibitions as it typically involves investment scams that target specific groups. Perpetrators of affinity fraud may face charges for securities fraud, theft, and other related crimes under Idaho Code. Additionally, the Idaho Department of Finance, which regulates securities in the state, can investigate and take administrative action against individuals and entities involved in such schemes. Victims of affinity fraud in Idaho are encouraged to report the fraud to the Idaho Department of Finance and may also have the right to pursue private legal action to recover their losses. It's important to note that while community leaders may be used to promote these schemes, if they are unaware of the fraudulent nature, they too can be victims. However, if they are complicit, they could also face legal consequences.