Identifying Affinity Fraud- Part 2

Fraud is Fraud! – Affinity Fraud: Part 1
Online Fraud- Part 3

How do you protect yourself from Affinity Fraud?

The best way to protect yourself from any kind of financial scam or fraud is to become an informed investor. Basically the more we know, the better we are able to identify fraudulent activity and avoid being a victim. We are also better positioned to help others make more informed decisions.


Here are some tips that we really want you to tell everyone:

  1. Ask questions and get the facts about any investment before you buy. Check out everything – no matter how trustworthy the person seems who brings the investment opportunity to your attention. Never make an investment based solely on the recommendation of a member of an organization or religious or ethnic group to which you belong. The person telling you about the investment may not know much and may be fooled into believing the fraudulent investment
  2. Where do you check? The Trinidad and Tobago Securities and Exchange Commission’s (TTSEC) website of course. The TTSEC’s website,, hosts a list of registered companies, types of investments, broker dealers, and investment advisers, which are registered to do business. If they are not on the list, contact the TTSEC and lodge a complaint at .
  3. If an investment seems too good to be true, then it probably is. There are no ‘guaranteed’ investments or returns. All investments include some level of risk. Promises of quick and high profits, with little or no risk, are classic warning signs of fraud.
  4. Many fraudsters use pressure tactics to rush you into an ‘investment’ opportunity. It is possible that someone you know may have made money, or claim to have made a profit, but this does not mean you will. Revert to #2, before making any investment decision.
  5. Fraudsters are increasingly using the Internet and social media to target particular groups through e-mail spams and ads. If you receive an unsolicited e-mail from someone you don’t know, containing a “can’t miss” investment, think twice and report it to .


Our next article will look at Online Fraud in more detail.


Adapted from: