Financial Fraudsters Exploit Relationships

Posted: Friday, December 7, 2012 5:44 am | Updated: 2:35 am, Wed Dec 12, 2012.

Financial Fraudsters Exploit Relationships By NAPS,
North American Precis Syndicate sedaliademocrat.com

(NAPSI)—From your family to your social networks, the people around you often have the most influence on your life. But according to experts, fraud artists can also use those bonds to convince you to invest in a scam.

“This tactic is called affinity fraud, and it is one of the most common types of investor fraud, because it exploits the bonds you share with others,” said Gerri Walsh, president of the FINRA Investor Education Foundation. “A fraudster will create a common bond strongly shared with community members—like in a church or the military—and then use this bond to take advantage of their trust, luring multiple investors in the community.”