Ohio Department of Commerce
09/13/2024 | Press release | Distributed by Public on 09/13/2024 12:00
Ohio Division of Securities Reminds Ohioans of Affinity Fraud Risks Amid Nationwide Surge in Cases
COLUMBUS, Ohio -The Ohio Department of CommerceDivision of Securitiesis warning Ohioans about an increased risk of affinity fraud and the significant financial impact it can have on victims. Affinity fraud scams exploit the trust and friendship that exist within groups of people who share common interests in order to exploit vulnerable investors. Often times, affinity fraud victims are targeted through their religious affiliation, and fraudsters may even enlist respected leaders within the group to unknowingly promote fraudulent investment opportunities.
The Division of Securities is part of the Ohio Department of Commerce. The department is Ohio's chief regulatory agency, focused on promoting prosperity and protecting what matters most to Ohioans. We ensure businesses follow the laws that help them create jobs and keep Ohioans safe. To learn more about what we do, visit our website at com.ohio.gov.
According to the North American Securities Administrators Association, last year, states across the country received 2,761 reports of such financial exploitation, which was nearly a 100% increase from the previous year.
Victims of these crimes often fail to notify authorities or pursue legal remedies, as they are likely to attempt to resolve these issues within the group. That can leave victims without any recourse to recoup the money they have lost.
"Affinity fraud is an unfortunate reality that preys on the close bonds and trust within communities," said Janice Hitzeman, an Attorney Inspector with the Division of Securities. "Our division is working tirelessly to educate and protect Ohioans from these deceitful and destructive schemes. We urge all Ohioans to be extremely careful and cautious in the event they are approached with an investment opportunity, especially if they do not know the individual well."
The Division of Securities urges Ohioans to be mindful of these scams and to follow certain precautions, including:
Be wary of investments closely tied to specific religious beliefs.
It is unlikely that legitimate investment opportunities will be exclusive to members of a particular faith.
Be cautious of promoters leveraging connections or leadership positions within a religious group.
The success of an investment is rarely linked to the promoter's "inside" contacts.
Disregard claims that religious-based investments are unregulated.
All investment opportunities are subject to state and federal securities laws.
Investigate newcomers to your religious community who share investment opportunities.
Verify the individuals' background within the church. If they claim to be a financial broker or advisor, be sure to verify their status with the Division of Securitiesby searching for them via the online search tool. Individuals should also call the Ohio Investor Protection Hotline at 1-877-683-7841 and consult the Better Business Bureau.
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About the Ohio Division of SecuritiesThe Division of Securities is part of the Ohio Department of Commerce. The department is Ohio's chief regulatory agency, focused on promoting prosperity and protecting what matters most to Ohioans. We ensure businesses follow the laws that help them create jobs and keep Ohioans safe. To learn more about what we do, visit our website at com.ohio.gov.