Affinity Fraud
Topics Covered:
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How To Avoid Affinity Fraud
- Beware of the use of names or testimonials from other group members. Scam artists frequently pay out high returns to early investors using money from later arrivals. Accordingly, early investors may be wildly enthusiastic about a scheme that may collapse entirely once you’ve invested.
- Obtain a prospectus or other form of written information that details the risks in the investment and procedures to get your money out.
- Ask for professional advice from a neutral outside expert not in your group – an accountant, attorney or financial planner – to evaluate the investment.
- Ask the Department of Financial Institutions Securities Division for help. Before investing any money, call us in order to learn more about the salesperson and firm. The simplest inquiry is to ask if they are registered to do business in Washington state. And is the investment registered. If one or the other is not registered, that is a sure warning to inquire further. Don’t take the word of a salesperson! Check out the investment yourself.
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