5 Tips for Avoiding Affinity Fraud
| November 18, 2019
Close Connections Don’t Preclude Investment Fraud
Many con artists take advantage of the close connections in members of communities or groups in order to pitch their Ponzi schemes, and it’s important to be on the lookout for affinity fraud when you hear about a new investment, especially if it sounds “too good to be true.”
Here are five to keep in mind when you hear about investment opportunities:
Use your head if they’re pulling your heartstrings. One way that fraudsters appeal to churches and other organizations is by manipulating their emotions and taking advantage of their desire to help. Don’t let your heart get in the way of solid research and investigation.
Check out the promoter and the investment. Take the time to do some research into the investment and the person pitching the investment. Look for any warning flags, and make sure you understand how the investment works and what the risks are.
Sleep on it. Make a habit of always “sleeping on it” before you decide to invest in a new opportunity, especially if you feel pressured or harassed to act right away. Any legit financial professional will give you as much time as you need to think it over.
Ask a neutral third party for advice. If you’re still unsure about an investment opportunity, don’t be afraid to look for outside advice. Talk to a third-party financial professional of your own choosing about the investment, and make sure you understand the risks.
If you’ve already become a victim, don’t let it slide. Although you may be tempted to cut your losses and move on, other members of your community could fall prey to the same tricks. Don’t let a con artist con you into keeping it a secret.
If you believe you have become the victim of a Ponzi scheme, it is important that you seek reliable legal guidance as soon as possible. A Ponzi scheme lawyer with Meyer Wilson would be happy to meet with you in a completely free, no-obligation consultation to discuss your case and your options. Reach out to us today or fill out the confidential online contact form to learn more.