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COLUMBUS — The Ohio Department of Commerce Division of Securities is warning Ohioans about an increased risk of affinity fraud and the significant financial impact it can have on victims. Affinity fraud scams exploit the trust and friendship that exist within groups of people who share common interests in order to exploit vulnerable investors. Often times, affinity fraud victims are targeted through their religious affiliation, and fraudsters may even enlist respected leaders within the group to unknowingly promote fraudulent investment opportunities. <\/p>\n\n\n\n
According to the North American Securities Administrators Association, last year, states across the country received 2,761 reports of such financial exploitation, which was nearly a 100 percent increase from the previous year.<\/p>\n\n\n\n
Victims of these crimes often fail to notify authorities or pursue legal remedies, as they are likely to attempt to resolve these issues within the group. That can leave victims without any recourse to recoup the money they have lost.<\/p>\n\n\n\n
\u201cAffinity fraud is an unfortunate reality that preys on the close bonds and trust within communities,\u201d said Janice Hitzeman, an Attorney Inspector with the Division of Securities. \u201cOur division is working tirelessly to educate and protect Ohioans from these deceitful and destructive schemes. We urge all Ohioans to be extremely careful and cautious in the event they are approached with an investment opportunity, especially if they do not know the individual well.\u201d<\/p>\n\n\n\n
The Division of Securities urges Ohioans to be mindful of these scams and to follow certain precautions, including:<\/p>\n\n\n\n