Fighting Fraud
By Better Business Bureau Serving Greater Cleveland
The ‘Secret Sister’ gift exchange campaign quickly became popular several years ago through Facebook posts promising participants would receive up to 36 gifts in exchange for sending one gift. Each holiday season, the scheme pops back up.
One version of this scam revolves around exchanging bottles of wine or bourbon; another suggests purchasing $10 gifts online. You might see references to receiving “happy mail” or doing the exchange “for the good of the sisterhood.” During the 2024 holiday season, be aware of variations of this theme that may crop up on social media.
The scheme starts with a convincing invitation—either by email or social media—to sign up for a great, fun program. All you must do is provide your name and address and the personal information of a few additional friends and tack this information onto a list that’s already started of people you’ve never met on the internet. Next, it’s your turn to send an email or social media invitation to send a modest gift or bottle of bourbon to a stranger along with their friends, family and contacts.
A recent variation of this exchange involves sharing your e-transfer email, encouraging participants to choose a name from a list, and sending money to strangers as a “pay it forward” gesture. Another spin: “Secret Santa Dog” invites people to purchase a $10 gift for a surprise recipient’s dog.
In all of these versions, you give away your personal information, and you’re left buying and shipping gifts or money to unknown individuals, hoping that someone else will reciprocate the favor by sending the promised number of gifts in return. Unfortunately, it often doesn’t happen. Like any other pyramid scheme, it relies on recruiting individuals to keep the scam afloat. Once people stop participating in the gift exchange, the gift supply also stops, leaving hundreds of disappointed people without their promised gifts or cash.
Note: Pyramid schemes are illegal in the US. The U.S. Postal Inspection Services explains that these gift exchanges are considered a form of gambling and that participants could be penalized for jail time, fines or a lawsuit for mail fraud.
Participating in these schemes poses another layer of danger. When signing up, the alleged campaign organizer asks for personal information, such as a mailing address or an email. With just a few pieces of information, cyber thieves could expose you to future scams or commit identity theft.
If you’ve been the victim of a scam on social media, report it to the BBB Scam Tracker. Your report helps us build consumer awareness and reduce the effectiveness of scammers’ favorite tactics. Have additional questions? Reach out to your BBB at 216.241.7678 or [email protected].
