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 Mexico, affinity fraud is considered a serious criminal offense. This type of fraud specifically targets groups based on shared characteristics such as age, religion, ethnicity, or other common bonds. New Mexico's securities laws, which are enforced by the New Mexico Regulation and Licensing Department's Securities Division, prohibit fraudulent practices in connection with the offer, sale, or purchase of securities. Affinity fraud may involve Ponzi schemes or pyramid schemes, which are illegal under both state and federal law. The New Mexico Securities Act (NMSA 1978, Sections 58-13B-1 to 58-13B-51) provides the regulatory framework for securities in the state and includes provisions against fraud and deceit in securities transactions. Victims of affinity fraud in New Mexico are encouraged to report the crime to the state's Securities Division and may also have the option to pursue civil remedies. Additionally, federal laws, such as those enforced by the Securities and Exchange Commission (SEC), also apply to affinity fraud cases and provide for additional avenues of recourse for victims.