Affinity frauds target members of identifiable groups, such as the elderly, or religious or ethnic communities. The fraudsters involved in affinity scams often are—or pretend to be—members of the group.

Fraudsters may enlist respected leaders from the group to spread the word about the scheme, convincing them it is legitimate and worthwhile. Many times, those leaders become unwitting victims of the fraud they helped to promote.

These scams exploit the trust and friendship that exists in groups of people. Because of the tight-knit structure of many groups, outsiders may not know about the affinity scam. Victims may try to work things out within the group rather than notify authorities or pursue legal remedies.

Affinity scams often involve Ponzi or pyramid schemes where new investor money is used to pay earlier investors, making it appear as if the investment is successful and legitimate.

In Maryland, affinity fraud is considered a serious criminal offense. The state's laws against fraud and deceptive practices cover schemes that exploit trust within groups, such as religious or ethnic communities. Maryland's Securities Act, found in the Maryland Code, Business Regulation Article, Sections 11-101 through 11-802, prohibits fraudulent securities practices, including Ponzi and pyramid schemes, which are common in affinity frauds. Additionally, the Maryland Consumer Protection Act (Commercial Law Article, Sections 13-101 through 13-501) provides broad protection against deceptive and unfair trade practices, which can include affinity fraud. Victims of affinity fraud in Maryland are encouraged to report the matter to the Maryland Attorney General's Office, specifically the Securities Division or Consumer Protection Division, which can investigate and prosecute such cases. The state also encourages victims to seek legal remedies, which may include civil lawsuits for recovery of losses. It's important to note that while community leaders may be involved in promoting these schemes, they can also be victims and held accountable if they knowingly participate in the fraud.