Avoiding Internet Affinity Fraud: Don't Take Their Word for It

Affinity fraud is becoming more and more common as Internet groups take hold. Purveyors of this type of fraud join online groups and message boards to gain the trust of other members, then to solicit "get rich quick" schemes that defraud hundreds of people out of their hard-earned money. Not only could you wind up broke and bitter, but you could also make yourself criminally liable if you don't take steps to avoid affinity fraud.

Beware the Enthusiastic

Most people are more likely to tell you about a business or investment they didn't like than one with which they had a positive experience. When someone in a group or forum starts touting an investment opportunity like it's the most wonderful thing in the world, you could be dealing with affinity fraud. They know that it's easier to get a group to go along with someone than to target individuals, and their peppiness should be a red flag.

Watch Out for Lurkers

People who hang around in forums without posting anything about themselves are often called "lurkers". Those who are trying to spread affinity fraud are using this time to build their reputation in the forum or group without getting too involved. They won't join in on many discussions, and they don't want to talk about anything that doesn't have to do with the business in which they want you to invest.

Ask for Literature

The best way to avoid affinity fraud on the Internet is to ask for literature about the opportunity they are marketing. Let them know you'll be happy to look over contracts, applications and brochures, but that you don't make financial decisions based on the "experience" of one individual. In most cases, they will make up an excuse and try another forum or message board on for size.

Warn Others

If you think that someone else on the Internet might fall victim to affinity fraud, it is your duty to warn them. This can save hundreds of people money and time, and will give you a sense of accomplishment. Plus, if you post a "Warning: Fraud Alert" message in the forums, the affinity marketers will likely find a different forum to haunt. They want easy marks, and don't have time to deal with people who actually do their homework.