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 Oklahoma, affinity fraud is considered a serious criminal offense. It is a type of investment fraud that targets specific groups, often exploiting the trust and camaraderie within those communities. Oklahoma statutes, in line with federal law, prohibit fraudulent investment activities, including Ponzi and pyramid schemes, under various fraud and securities regulations. The Oklahoma Securities Commission is the state agency responsible for enforcing securities laws, and it actively investigates and prosecutes individuals and entities involved in securities fraud, including affinity fraud. Victims of such scams are encouraged to report the fraud to the Oklahoma Securities Commission, the Oklahoma Attorney General's Office, or the local authorities. Additionally, federal agencies like the Securities and Exchange Commission (SEC) and the Federal Trade Commission (FTC) may also get involved in cases of affinity fraud, especially if the scam crosses state lines. It's important for individuals to conduct due diligence before investing and to be wary of schemes that promise high returns with little or no risk, especially those that are promoted within trusted groups.