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 Utah, affinity fraud is a significant concern due to the state's large number of tight-knit religious and ethnic communities. Utah law recognizes the seriousness of affinity fraud and has provisions to combat it. The Utah Division of Securities within the Department of Commerce is the primary state agency responsible for enforcing securities laws and protecting investors from fraud, including affinity fraud. Under Utah Code, individuals or entities that engage in fraudulent investment schemes, including Ponzi and pyramid schemes, can face severe penalties, including fines and imprisonment. The state statutes require full disclosure of investment risks and prohibit deceptive practices. Additionally, Utah has a 'White Collar Crime Offender Registry,' which includes individuals convicted of securities fraud, which can serve as a resource for residents to check the background of those offering investment opportunities. Victims of affinity fraud are encouraged to report the crime to the authorities, including the Utah Division of Securities and local law enforcement. Federal law, enforced by agencies like the SEC and the FBI, also applies to affinity fraud cases, providing additional layers of protection and recourse for victims.