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 Pennsylvania, affinity fraud is considered a serious criminal offense. These scams, which exploit the trust within groups such as religious or ethnic communities, often involve fraudulent investment schemes like Ponzi or pyramid schemes. Pennsylvania's laws against fraud and deceptive business practices would apply to affinity frauds. The Pennsylvania Securities Act of 1972, along with federal securities laws, provides a framework for the regulation of securities and protection against investment fraud. The Act requires proper registration of securities, prohibits fraudulent and manipulative practices, and gives the Pennsylvania Securities Commission the authority to enforce these regulations. Victims of affinity fraud in Pennsylvania are encouraged to report the fraud to the Pennsylvania Securities Commission, the Pennsylvania Attorney General's office, or the local district attorney. These agencies can investigate and prosecute the fraudsters. Additionally, victims may have civil remedies available to them, such as filing a lawsuit to recover their losses. It's important for individuals to perform due diligence before investing and to be skeptical of investments that promise high returns with little or no risk, especially when the offer is made by someone within a trusted group.