Better Business Bureau
The Better Business Bureau is reminding you again this year not to add items for the online “Secret Sister” gift exchange to your holiday shopping list — the exchange and other similar invitations are illegal. The campaign, which began making the rounds in 2015, has again been circulating on social media sites, in particular, Facebook.
The post claims that participants will receive dozens of gifts in exchange for sending one gift valued at $10. Users are encouraged to invite others to participate in the holiday gift exchange, where they will receive information on where to mail gifts.
But there is one big problem with gift chains like “Secret Sister” – they are pyramid schemes. The U.S. Postal Inspector says that these types of gift exchanges are considered illegal gambling and that participants could be subject to penalties for mail fraud. Pyramid schemes are illegal, either by mail or on social media, if money or other items of value are requested with assurance of a sizeable return for those who participate.
Here is how the scheme works: A Facebook user will post a status about a holiday gift exchange, asking a minimum of six friends to participate. Participants will receive a list of two names, and instructions to send a gift to the participant in the first spot. That person’s name is then removed, and the participant in the second spot is moved up to the top of the list. You then add your name to the newly-available second spot, and send the gift exchange invitation to six other friends. Those six will repeat the process in hopes that if everyone purchases one gift for a stranger, they will receive as many as 36 gifts in return.
Unfortunately, it isn’t likely to happen. Just like any other pyramid scheme, it relies on the recruitment of individuals to keep the scheme afloat. Once people stop participating in the gift exchange, the gift supply stops as well and leaves hundreds of disappointed people without their promised gifts.
If you receive a chain letter by mail, email, or social media, especially one that involves money or gifts, ignore it. Report the post to Facebook by clicking in the upper-righthand corner and selecting “Report post” or “report photo.” And as always, be wary of any solicitation that requests money or personal information, such as your address.
For more information, visit the U.S. Postal Inspection Service site.
For more information on scams, check out BBB Scam Tips (BBB.org/ScamTips). Report suspicious activity to BBB Scam Tracker.
Your BBB is located at 1 East 4th Street Suite 600 Cincinnati, Ohio 45202—to reach the office, call (513) 421-3015.