Even though Church and government officials have raised alarms for decades about affinity fraud in Utah, law enforcement officials have reported several large criminal fraud cases in 2025.
Affinity fraud is a type of investment scam defined by the relationship between the con artist and the victim.
According to the Utah Department of Commerce, “Affinity fraud is when someone abuses membership or association with an identifiable group to convince a potential investor to trust the legitimacy of the investment.”
James S. McTighe, former head of the Salt Lake FBI, explained that affinity fraud most often happens between people who know one another.
“Affinity fraud is when someone you know — for example, a church member, a coworker or a friend — takes advantage of you in an investment fraud scheme,” McTighe said in a video in 2011.
In such cases, familiarity and friendship often lead victims to overlook red flags in investment plans.
Groups that are vulnerable to affinity fraud include those with similar professions, ages and religions.
Utah has long been identified as a state vulnerable to affinity fraud, with a net loss of an estimated $1.4 billion in 2010, according to an FBI Salt Lake Division press release.
Since the beginning of this year, the U.S. Attorney’s Office for Utah has reported at least four cases of investment fraud within the state, with a net loss of more than $49 million.
A 29-year-old from Utah County defrauded more than 500 individuals, obtaining more than $20 million, according to the U.S. Attorney in Salt Lake City.
The individual lied to investors about the success of his business and promised investors a consistent return of passive income, according to a Department of Justice news release.
Another individual, a 29-year-old from Saratoga Springs, ran a $1.6 million affinity fraud scheme and defrauded approximately 45 investors, according to the U.S. Attorney.
The individual obtained investments from people he knew personally or through social media, the release reported.
The individual was sentenced to two years in prison, along with an additional three years of supervised release. He was also ordered to pay a fine of more than $1.5 million, according to the press release.
John Huber, former U.S. Attorney for the District of Utah, said Utah’s high religiosity contributes to people’s high levels of trust and predisposition to fraudulent investments.
“It may be because of the predominant religion that allows people to have an instant trust extended to them, which then they take advantage of and exploit,” Huber said in a video for the department in 2017.
The Church of Jesus Christ of Latter-day Saints reports more than 2 million members in the state of Utah.
Church officials have repeatedly warned members about the dangers of risky investments.
In 2008, the First Presidency of the Church wrote a letter to its members in both the United States and Canada.
Church leaders sounded the alarm about possible fraudulent schemes and encouraged members to be cautious with their investments.
“We are also concerned that there are those who use relationships of trust to promote risky or even fraudulent investment and business schemes,” wrote the First Presidency. “While all investments carry an element of risk, that risk can be managed by following sound and proven financial principles.”
The First Presidency encouraged members to live within their means, avoid debt and consult with licensed financial advisors.
The Utah Division of Securities encourages potential investors to demand disclosure documents upfront. These documents should clearly detail management, how much money will be raised, how the money will be used and the risks associated with investing.
The division’s website also offers a list of helpful questions to consider before investing. Here are a few:
- Are you being offered the opportunity to invest because of your membership or relationship to an affinity group?
- Are respected group members or their names and positions being used to promote the investment?
- Are you being asked to trust in the legitimacy of the investment because of your relationship or membership?
- Are you being encouraged to invest by the fact that other members of the group have invested?
- Are you being encouraged not to report any suspected fraudulent conduct by members in your group?
While affinity fraud is a reality for many, it is preventable. Individuals can invest safely as they stay up to date and educated on their business ventures. Licensed financial advisors can also help people understand the nature of a business plan and its associated risks prior to investment.
As individuals look beyond interpersonal relationships to the projected numbers and plans, they can invest wisely and uncover affinity fraud.