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 Maine, affinity fraud is considered a serious financial crime and is subject to both state and federal regulations. Under Maine law, affinity fraud can fall under various statutes related to securities fraud, theft by deception, and other deceptive practices. The Maine Office of Securities enforces laws pertaining to securities fraud, which includes schemes that target specific groups based on shared characteristics. These laws are designed to protect investors and maintain fair and honest financial markets. At the federal level, the Securities and Exchange Commission (SEC) also addresses affinity fraud, particularly when it involves securities or investment fraud. The SEC can investigate and prosecute individuals or entities that engage in such schemes. Victims of affinity fraud in Maine are encouraged to report the crime to the Maine Office of Securities, the Maine Attorney General's Office, or the SEC. Additionally, they may seek civil remedies through private legal action. It is important for members of groups to remain vigilant and to verify the legitimacy of investment opportunities, even when they are presented by seemingly trustworthy individuals within their own community.