Investment scams aimed at identifiable group memberships, such as the elderly or particular religious groups or communities, are often referred to as affinity scams.

Sometimes those advancing affinity scams lure unwitting partners -- leaders of the targeted groups -- often through false statements about the legitimacy of the scam activities.

According to the U.S. Securities and Exchange Commission in "Affinity Fraud: How to Avoid Investment Scams That Target Groups" (available online at http://www.sec.gov), affinity scams exploit the trust and friendship that exist in groups of people who have something in common.

The result is to create a group of tight-knit victims who are less likely to report their victimization to authorities.

According to the agency, a common form of affinity scam involves the use of illegal Ponzi or pyramid schemes in which new investor money is used to make payments to earlier investors to give the false illusion that the investment is successful. Eventually, the supply of investors dries up, the whole scheme collapses and investors are left out of most or all of their money.

To help avoid becoming a victim, the SEC urges you to check out everything, no matter how close you are to the person promoting the investment. Remember that the person promoting the investment may have been fooled into thinking that the investment opportunity is legitimate.

Be cautious about investment propositions that promise spectacular profits or guaranteed returns. Don't succumb to high pressure appeals to invest.

Opinions expressed solely are those of the writer. Joseph Pellicciotti is a lawyer, professor and vice chancellor at Indiana University Northwest.