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What’s an Affinity Scam?

An affinity scam is when a confidence man relies on a common religious, ethnic, or social background to lull unsuspecting marks into a false sense of security. Rather than scrutinize an otherwise dubious proposition, the victim trusts the confidence man on the basis of a common background.

Page C1 of the Wall Street Journal has a story about an alleged $250 million dollar affinity scheme that principally victimized Orthodox Jews. Hundreds of innocent, trusting people were ruined.

Government, though, sometimes offers its own version of an affinity scheme. Local officials in towns across America often ask voters and taxpayers to trust a scheme because it comes from local politicians – people who are the supposedly the salt of the earth, etc.

The only reason to support a proposal is the soundness of its method and effects.

That won’t stop politicians from tugging on heartstrings and supposed affinity, though.

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