Fraud can strike at any organization, but churches have often been left extremely vulnerable because of their over-trusting nature. As a leader of the church, you have a responsibility to your congregation and God to safeguard the ministry assets. You might think, "This will never happen to me." however, it can happen to you. Churches experience fraud at nearly the same frequency as secular organizations. You have to look at fraud in a serious light.
Fraud Not Always Instantly Detected
Let's say you have brought in a new church insurance agent, and you think the world of him. That, however, becomes a weak point. We have known many churches that paid extra money for church insurance simply because they liked the agent they dealt with. The problem? Not all agents deserve that trust. In some cases, the insurance provider is blatantly overcharging them by hundreds of dollars per year. Insurance companies, even non-secular ones, are in business to make money.
Affinity Fraud: What Is It?
Affinity fraud deals with a scam that related to preying upon members of a close-knit group. For example, scamming the members within a church. Over the years, affinity fraud has increased, but you can often spot this type of fraud ahead of time because the con artist will often present it as a Ponzi or pyramid scheme. During this scheme, money will be paid from the newer investors into the earlier ones to give the appearance of success.
Fraud can exist within a church for years, and by the time you have detected it, your ministry has already lost hundreds of thousands of dollars. When talking to your church insurance agent, let them know that you will look around at prices. You want to leave them on the edge of their seat a little because that is how you will receive the best prices and avoid being scammed.
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