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 Wyoming, affinity fraud is considered a serious criminal offense. The state's statutes on fraud and deceptive trade practices would apply to affinity scams, which are a form of fraud that targets specific groups based on shared characteristics or affiliations, such as age, religion, or ethnicity. These scams often involve Ponzi or pyramid schemes, which are illegal under both state and federal law. The Wyoming Uniform Securities Act (WUSA) also provides a legal framework for prosecuting securities fraud, which is often a component of affinity frauds. Under WUSA, it is unlawful to commit fraud in connection with the offer, sale, or purchase of securities. Victims of affinity fraud in Wyoming can report the crime to the Wyoming Division of Banking, which oversees securities regulation, or to local law enforcement. Additionally, federal agencies like the Securities and Exchange Commission (SEC) and the Federal Trade Commission (FTC) may also be involved in investigating and prosecuting such cases. It is important for individuals to be aware of these scams and to report any suspicious activities to authorities rather than trying to resolve issues within the group, as this can help prevent further victimization and facilitate legal action against the perpetrators.