New York, NY securities attorney Jenice L. Malecki talks about affinity fraud and how it differs from other types of investment fraud. She mentions that affinity fraud is one of the most disheartening forms of financial deception. It often occurs within close-knit communities such as churches, immigrant groups, workplaces, and even hospitals, where colleagues—doctors, nurses, or staff—may all be targeted by the same fraudster. Affinity fraud relies on a shared connection: the perpetrator may belong to the same cultural group, have worked at the same company for years, or serve as a trusted advisor for decades. Unfortunately, some individuals exploit this trust to carry out fraudulent schemes.

She has encountered cases where brokers or advisors, once regarded as trustworthy for decades, suddenly betray that trust. The emotional and financial impact is particularly severe because the fraud comes from someone within a familiar and trusted network. She emphasizes the importance of vigilance with one’s finances, likening it to being a squirrel protecting its nuts: if you leave them unattended or fail to monitor who is responsible for them, they can easily be taken. Affinity fraud, she notes, remains one of the saddest and most challenging forms of fraud to confront.