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 Washington State, affinity fraud is considered a serious criminal offense. These scams, which exploit the trust within groups such as the elderly, religious, or ethnic communities, often involve fraudulent investment schemes like Ponzi or pyramid schemes. Washington State's securities laws, enforced by the Washington State Department of Financial Institutions (DFI), prohibit fraudulent practices in connection with the offer, sale, or purchase of securities. Violations of these laws can lead to both civil and criminal penalties, including fines and imprisonment. Additionally, the Washington State Attorney General's Office can prosecute fraudsters for violations of the Consumer Protection Act, which prohibits deceptive practices in commerce. Victims of affinity fraud in Washington are encouraged to report the fraud to the DFI, the Attorney General's Office, or local law enforcement. They may also pursue private legal action to seek restitution. It's important for individuals to conduct due diligence before investing and to be wary of investment opportunities that seem too good to be true, even if they are presented by seemingly trustworthy individuals within their community.