In the Forex market Beware of Affinity Fraud

By Tom K Kearns

At a very young age we were taught to look both ways before crossing the street, we were also told to pay attention to the cross walk guide, and the stop sign on the side of the buses that prevented us from crossing the street. In our older years we are still prompted to keep an eye on the predators that prey on us like the bully after our lunch money. Our concerns now are with money and internet scams.

Affinity frauds are the just some of the lions in the grass eyeing us like scrumptious meat. Affinity frauds pounce on the identifiable and very specific groups in the money markets, factions of religion, ethnicity and demographics. It is a new type of fraud in the Forex market that is being heavily watched. Some brokers play in the field of predators offering alleged investment opportunities to specific areas claiming affinity (similarity, likeness) towards them, to lure in a comfort feeling as in to better be able to reel them like fish to the hooked worm.

Getting things done and getting people connected in a world where enormity of true connection is easily portrayed is effortless, via emailing, instant messaging, and so on. Individuals need to be aware of this when they are making investments with Forex brokers or other types. The companies, regulators, and capital of the newfound brokers, traders or investors need to be researched.

Being legitimate is actually a typical move for these swindlers. They will have a few real customers and using that as collateral to fetch others by forming the bond, working hand in hand, and getting testimonials. For the "others" unfortunately, will be lead to a fraud that can lead to serious damages. The lack of notifying the authority is all too common in this situation; instead they try to fix issues within the group which leaves them shorthanded and alone.

Avoiding Affinity Frauds

1) The first thing to do, which I feel is the most important, before investing ANYTHING, is to call and ask your state or provincial security agencies about the sales person, firm or company. This is a simple maneuver, and can save a heap of you a good chunk of money. First, ask if the investor or company is registered, and then see if the investment is allowed to be sold. If not completely back away, those investors have a way with words, and do not care in anyway for you. DO your research!

2) Obtain written information from the investor on the procedures of the investment, risks of the investment, and procedures on getting your money out!

3) Ask for professional advice, from an attorney, accountant, financial planner; be it through a friend or you pay them, you are much better off.

4) Earlier people the investor had that were legitimate could be incredibly enthusiastic, however later arrivals may not be so pleased. So pay attention to dates of testimonials. Look closely for odd names and repetitive names. Be AWARE! - 23204

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