Above / Better Business Bureau (BBB) Consumer Alert: Illegal Social Media “Secret Sister” Gift Exchange Scam has returned in time for the holidays. Delete. Delete. Report all scams to bbb.org/scamtracker.
Chicago – November 23, 2019- The Better Business Bureau is reminding consumers that the online “Secret Sister” gift exchange and similar invitations are illegal and should be ignored. The campaign, which was first big in 2015, typically resurfaces around the holiday season, and has again been circulating on social media sites, in particular Facebook.
The post claims that participants will receive up to 36 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.
Participation could be mail fraud, BBB warns
But there is one big problem with gift chains like “Secret Sister.” Individuals who choose to participate could find that they are involved in an illegal “pyramid scheme.” The U.S. Postal Inspection Service says that gift exchanges are illegal gambling, if money or other items of value are requested with assurance of a sizable return for those who participate. Participants could be subject to penalties for mail fraud.
In addition, anyone who decides to participate in programs like these will become much more likely targets of identity theft.
“Those who get involved often do so thinking that the amount needed to participate is so small it’s worth the risk if they’ll receive gifts worth maybe a couple hundred dollars,” notes Naperville resident Steve Bernas, president and CEO of Better Business Bureau serving Chicago and Northern Illinois. “I’m sure they have not considered the legality of participating, but pyramid schemes are a serious offense,” he added. “The best thing people can do is avoid it altogether. If you receive an invitation to participate, ignore it. It’s not worth it.”
How the scheme works
If a consumer purchases one gift for a stranger, she is promised she will receive as many as 36 gifts in return. This type of gift exchange may seem reasonable enough in theory: six friends invite six more friends, who all send gifts to the participant in spot #1 before that person’s named is removed. This process repeats itself with the participant in the #2 spot, and so on. Of course, starting this gift exchange comes with a catch—you need to disclose your personal information, such as your full name and home address.
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 on the three little dots in the upper right corner of the post.
And report the scam to BBB at bbb.org/scamtracker.
Report submitted by Steve J. Bernas, President & CEO, Better Business Bureau of Chicago and Northern Illinois.
