Utah's Francois Grayson warns against affinity fraud targeting seniors during Consumer Protection Week

The Utah Division of Securities held a meeting on March 7, 2025, to address the issue of affinity fraud during National Consumer Protection Week. Affinity fraud is a type of investment scam where individuals, often trusted friends or family members, persuade others to invest in fraudulent schemes. Francois Grayson, assistant director of the Utah Division of Securities, highlighted that this type of fraud is particularly prevalent in Utah due to the community's trusting nature.

Grayson provided several key tips for identifying potential scams. He emphasized the importance of verifying whether the person offering an investment is licensed, which can be done through the division's website, securities.utah.gov. He also noted that legitimate investments typically come with formal documentation, unlike verbal commitments often associated with scams. High-pressure sales tactics that do not allow for adequate research are another red flag.

The meeting also focused on the vulnerability of certain groups, particularly seniors, who may be targeted due to their retirement savings. Grayson explained that while anyone can fall victim to affinity fraud, scammers often seek out seniors for their nest eggs. To combat this, the Utah Division of Securities has implemented various resources, including a special initiative called "Nights of Scam," aimed at educating and protecting seniors from investment fraud.

Grayson encouraged seniors to consult with a trusted contact before making any investment decisions, especially those that seem too good to be true. This approach is intended to provide an additional layer of scrutiny to help ensure the legitimacy of investment offers.

For more information on protecting oneself from affinity fraud, individuals can visit scams.utah.gov, where they can find resources on identifying red flags and submitting complaints. The meeting underscored the importance of vigilance and education in safeguarding investments against fraud.