Talk Money: April 14, 2016

Tony FIeld (Paul Henry)
Tony FIeld (Paul Henry)

Today we are looking at one of the nastiest types of fraud - being ripped off by someone you know and trust.

It is known as affinity fraud. It involves a scammer targeting a group of people.  The group can be your iwi, church, or sports team. Retirees are often targeted.

The fraudster plays on the affinity we have for our friends, we trust them. The scammer joins the group and then offers an opportunity they say will be a great investment 

Here are some tips for avoiding being scammed

- Never invest solely on recommendation of a friend

- get the offer in writing and do your own research

- get advice

- avoid anything that claims there is no risk involved

- do not be pressured or rush into anything.

Sorted.org.nz has lots more advice on how to avoid various types of fraud.

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