Yes, Ponzi and pyramid schemes are commonly used in affinity fraud. Scammers often target trusted community groups, such as religious or cultural organisations, and convince a leader to invest. Once the leader is on board, they may unknowingly encourage others to join, helping spread the scheme. 

In a pyramid scheme, each person is promised high returns for recruiting new investors. Early participants may receive some money, but those who join later are left out of pocket when the scheme collapses. 

A Ponzi scheme works slightly differently. Investors are paid returns using money from newer investors, rather than actual profits. These schemes often appear more legitimate at first, making them harder to spot. 

Both types rely on continuous recruitment or investment and usually result in significant losses once the scam unravels. 

Affinity fraud can be hard to spot, but there are warning signs to watch for. Be cautious of unsolicited investment offers, especially those claiming to be exclusive to your religious or cultural group. Scammers may impersonate trusted figures or use group connections to gain credibility. 

Watch out for red flags like “faith-based” investments, unregistered advisors, high-pressure tactics, or being told to keep the opportunity secret. Never feel obligated to invest based on trust alone, and always seek independent advice before committing your money. 

If something feels off, act quickly. The sooner you speak to a professional, the more likely you are to stop the fraud and recover your funds.

Affinity fraud is just one of many scams to watch out for. Others include impersonation fraud, where fraudsters pose as friends, family members, or even officials, and online shopping scams, which use fake websites or ads to trick you into making purchases.

Before sharing personal details or making any investment, always research the person or company involved. Scams can be convincing, so take time to check before you commit.

Loan fee fraud: You’re accepted for a loan, but before it’s “approved”, you’re asked to pay a fee for insurance, processing or an admin charge. Once paid, the loan never arrives, and the scammer disappears with your funds.
Job scams: You apply for a job and are told you’ve been successful. But before you can start, you’re asked to pay for background checks, training, or admin costs. Once paid, the job offer vanishes, and so does the scammer with your money.
Social media competition: You’re told you’ve won a prize in a competition, perhaps one you never even entered. But to claim it, you need to pay a small fee for delivery, verification or admin. After you pay, the prize never arrives because the competition was fake.
Rental property scams: You find a great rental property online. The “landlord” asks for a deposit to reserve it, often claiming there’s a lot of interest or that you can’t view it in person. After you send the money, the property turns out to be fake — or already rented to someone else.

If you suspect you or someone you know has been targeted by affinity fraud, stop any further payments immediately and inform others in the group. Gather as much evidence as possible, including names, email addresses, phone numbers, screenshots, transaction records, and any communication with the scammer.

At Wealth Recovery Solicitors, we can support you in reporting the fraud and recovering your losses. Our team specialises in legal action against scammers and has helped clients recover over £50m. The sooner you act, the better your chance of a successful outcome, so be sure to get in touch with WRS to start your recovery as soon as you can.