Don’t get scammed: ‘Secret Sister’ gift exchanges still illegal, watchdog group warns
A holiday gift exchange that makes its rounds on social media every year is actually an illegal pyramid scheme, according to the Better Business Bureau.
The watchdog group is warning consumers about the “Secret Sister” program and says newer versions of the scam are cropping up online.
“[One] revolves around exchanging bottles of wine; another suggests purchasing $10 gifts online,” the group said. “You might see references to receiving ‘happy mail’ or doing the exchange for the ‘good of the sisterhood.’ “
How the scam works
The scheme, which promises participants dozens of free gifts in exchange for sending one gift, was widely shared across Facebook in 2015 and makes its return each year around the holiday season. It typically begins with an invitation sent via e-mail or social media message, and it asks for personal information such as a name or home address, the BBB warns.
It’s then the recipient’s turn to share the social media invite with their personal network, encouraging them to purchase a gift for a stranger — as well as their family and friends.
“The cycle continues and you’re left with buying and shipping gifts for unknown individuals, in hopes that the favor is reciprocated by receiving the promised number of gifts in return,” the watchdog group says. “Unfortunately, it doesn’t happen.”
“Secret Sister” and other online scams are becoming more common, but experts warn that pyramid schemes are illegal and considered a form of gambling in the U.S. Participants could not only face jail time, but they also put themselves at risk for fraud or identity theft by providing sensitive information, according to the Better Business Bureau.
What should you do?
The watchdog group says consumers should not respond online posts promising money or other gifts and instead report it to the social media platform on which it appeared.
Users should, in general, avoid giving out their personal information and remain wary of false claims of legitimacy.
This story was originally published November 19, 2020 at 3:18 PM with the headline "Don’t get scammed: ‘Secret Sister’ gift exchanges still illegal, watchdog group warns."