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Tennessee Department of Commerce and Insurance Raises Awareness About Affinity Fraud
Posted By Clarksville Online News Staff On Tuesday, November 19, 2019 @ 6:00 pm In News | No Comments
Nashville, TN – The Tennessee Department of Commerce and Insurance’s Securities Division is warning Tennessee investors about how to avoid becoming a victim of a type of fraud known as affinity fraud.
What is affinity fraud? Affinity fraud occurs frequently anywhere groups of people gather around a shared belief, interest, or goal such as places of worship, in tight-knit ethnic or immigrant communities, at country clubs, in professional organizations, online forums and elsewhere.
That shared interest – the reason a group gathers in whatever form it does – creates camaraderie and trust among the members.
Scam artists and fraudsters use the trust they build to convince members to invest in investment schemes or phony business projects to line their own pockets, leaving investors broke. The scammer gathers money from investors in the group, and often pays returns using new investor money. The scammer perpetuates this as long as he or she can.
Frequently, victims fail to report the fraud to avoid embarrassment or because they want to handle it within the group, allowing scammers to prolong their schemes.
What can investors do to spot fraudsters and avoid affinity fraud?
For more information, contact the Tennessee Securities Division  at 615.741.2947 before investing your money. We’re here to help with inquiries concerning securities broker-dealers, agents, investment advisers, investment adviser representatives, financial planners, registration status of securities or debt management programs, to report suspected fraud or to obtain consumer information.
Protecting Tennesseans through balanced oversight of insurance and regulated professions while enhancing consumer advocacy, education, and public safety. Our divisions include the State Fire Marshal’s Office, Insurance, Securities, Regulatory Boards, Tennessee Law Enforcement Training Academy, Tennessee Emergency Communications Board, and TennCare Oversight.
To check a license of a professional regulated by the Department, go to http://verify.tn.gov/ .
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URL to article: https://www.clarksvilleonline.com/2019/11/19/tennessee-department-of-commerce-and-insurance-raises-awareness-about-affinity-fraud/
URLs in this post:
 FINRA’s BrokerCheck: https://brokercheck.finra.org/
 Canadian Securities Administrators’ National Registration Search: https://www.securities-administrators.ca/nrs/nrsearchprep.aspx
 Image: http://www.clarksvilleonline.com/cols/www/delivery/ck.php?n=aa8e5b9a&cb=1512553253
 Tennessee Securities Division: https://www.tn.gov/commerce/section/securities
 http://verify.tn.gov/: http://verify.tn.gov/
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