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 New Hampshire (NH), affinity fraud is considered a serious criminal offense. Affinity frauds are deceptive practices that target specific groups, such as the elderly or religious and ethnic communities, by exploiting the trust and relationships within those groups. New Hampshire's securities laws, which are enforced by the New Hampshire Bureau of Securities Regulation, prohibit fraudulent activities related to the sale of securities. These laws are designed to protect investors from schemes like Ponzi or pyramid schemes, which are common in affinity frauds. Under NH RSA 421-B, the Uniform Securities Act, it is illegal to engage in any act, practice, or course of business which operates as a fraud or deceit upon any person in connection with the purchase or sale of any security. Violations of these regulations can lead to both civil and criminal penalties, including fines and imprisonment. Victims of affinity fraud in New Hampshire are encouraged to report such activities to the Bureau of Securities Regulation or the Attorney General's office. Additionally, federal laws under the jurisdiction of the Securities and Exchange Commission (SEC) also apply, providing further protections against securities fraud and allowing for additional enforcement actions.