AFFINITY FRAUD AND THE EVIL TWIN 111 ous about that. But doing so with the intent to exploit those commonalities for criminal purposes sets affinity fraudsters apart from legitimate salespeople. Neither the SEC nor any other regulator can slow the torrid pace of affinity fraud. But as a vigilant investor, you can. Be on the lookout. Due Diligence for the Vigilant The vigilant investor: ? Looks at what she has in common with the investment promoter and his investors and is wary if there is too much in common ? Calculates what a promoter who guarantees an investment would have to pay if it were to collapse and considers whether the promoter has the cash to make that payment ? Understands that the FDIC covers only losses from bank closures and pays only depositors ? Reviews the insurance policy or CDS that is supposedly insuring against losses and confirms that coverage by calling the alleged insurer directly ? Does not let an investment promoter's devout persona or reputation deter her from a thorough background investigation ? Avoids any investment pitched by an appeal to religious faith ? Uses services like LexisNexis to search for the possibility that an investment promoter is operating under an assumed name ? Considers ties between a profit-making venture and philanthropy a reason to be cautious ? Understands that investment advisers' outside business ventures can distract them from paying attention to their investment advisory business American Managememt Association · www.amanet.org