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|Articles on illegal behaviour|
Affinity fraud is the abuse of the trust of others with the trust stemming from sharing membership in an identifiable group, be it a socio-economic, religious, or ethnic group. The term is used in a legal setting, but it was popularized by economist Paul Krugman to explain persistent groupthink among intellectual and financial castes.
The result of affinity fraud can be a loss of trust as well as money — a fate usually reserved for the praying flock — or a reinforcement of false beliefs in the teeth of contradicting evidence — mainly found among people with power and wealth.
Unsuspecting members of a religious organisation are targets of fraudsters, since modern religions put emphasis on the claim that identifying oneself as a believer installs positive values like honesty and goodwill into the minds of the believer, and also many religions discourage followers exercising critical thinking in general, to prevent them questioning the religion itself. A fraudster can prey on the assumption shared by the believers that all who identify as such would not stoop so low as to cause any sort of harm to a fellow believer. This problem is especially notable among Mormons, due to the in-group mentality of the church; Utah is a major hive of affinity fraud for this reason, to the point where multi-level marketing (MLM) scams have been nicknamed "Mormons Losing Money". As it turns out, not only is fraud in the name of God a big business, but as seen with the Catholic sex abuse scandal, this trust can be exploited for even more sinister ends.
Sadly, even the skeptical community, one of the last places you'd expect affinity fraud to fly, is not immune from it, as the case of Al Seckel demonstrates. Seckel was the head of the Southern California Skeptics and a 'scientific and technical consultant' for the Committee for Skeptical Inquiry, contributing to the Skeptical Inquirer magazine as a physicist despite having no degree in physics. Seckel scammed people by dealing in rare books and papers, then either taking the money without providing the books that had been paid for or vice versa. His marks included scientists, other book dealers, a doctoral candidate, and a Silicon Valley consultant, all of them members of the skeptical community who trusted Seckel on account of his position within the community, and when he was called out for his actions, he frequently responded with lawsuits.
African American and Hispanic people are a distressingly common target for affinity fraud. One type, the claim that the US government has earmarked billions of dollars in reparations for slavery for African Americans and that all they have to do is send their name, address, date of birth, phone number, and Social Security number to this totally reputable source, is seen so often that it has its own separate page on Wikipedia linked from their page on affinity fraud. Since they're also highly religious demographics that mostly operate their own churches, they're also susceptible to the religion-based scams detailed above.
Bernie Madoff also used affinity fraud to build his pyramid scheme, ingraining himself in the Jewish communities of New York and South Florida and making himself a trusted figure among many well-heeled, "country club" Jews. By the time his scam was exposed, these people had trusted him with tens of billions of dollars.
In intellectual and media circles, affinity fraud is often perpetrated by opinion makers, scholars, and ideologues in order to enforce the conformity of political and economic views. Here, the common characteristics like wealth and status are not explicitly mentioned, but are understood as related. An overwhelming chunk of the Washington D.C. punditry and financial elite subscribe to hard money views on monetary policy and to reducing social spending. The effects these views have, when enacted, are measured and will convince the average person to abandon these views as they have a generally detrimental effect on societies. But among financial elites, these effects are not regarded as proof because a greater emphasis is put on what is important to the elite first.
In practice, most Beltway pundits, journalists, and advocates are rich and dabble in the stocks and investment world. Since hard money and high interest rates do well for some of these investment schemes and thus well for the rich, elites push for tight money policies. The financial interests are so aligned that even when the reality of fiscal and monetary contraction paints a grim picture for the general population, these policies are still championed by those in power.
Right-wing mail order fraud
The way right-wing affinity fraud works is:
- Older and more reactionary conservatives will pay ANY amount of money to take a stance in a culture war.
- They will cough up repeatedly.
- The more futile the better. Failure means more money next time you ask.
- The mailing lists of suckers themselves are valuable merchandise in right-wing circles because of 2.
The left-wing version doesn't happen nearly as often, because left-wingers typically have less money and a higher prevalence of the Nirvana fallacy, causing them to argue amongst themselves too much. For once, the stereotype of leftists being too beset by internecine squabbling to do anything works to their benefit.
- "Fleecing the flock." The Economist, 28 January 2012 (recovered 28 January 2016).
- Hines, Alice. "How Utah Became a Bizarre, Blissful Epicenter for Get-Rich-Quick Schemes." Talking Points Memo, 9 June 2015 (recovered 28 January 2016).
- "Affinity Fraud: Preying on those who pray"
- Oppenheimer, Mark. "The Illusionist." Tablet, 20 July 2015 (recovered 13 April 2016).
- "Al Seckel exposed." The Lippard Blog, 20 July 2015 (recovered 13 April 2016).
- IRS bulletin about the "slavery tax credit"
- Snopes: "Black Tax Credit"
- Alpert, Lukas I. "Investor furor over '$50B' scam." New York Post, 13 December 2008 (recovered 28 January 2016).