(WHDH) — The Better Business Bureau is warning Facebook users that the “Secret Sister” gift exchange campaign is an illegal pyramid scheme.
The campaign became popular in 2015 through Facebook posts promising participants up to 36 gifts in exchange for sending one gift valued at $10. Users were encouraged to invite others to participate in the holiday gift exchange, then promised they would receive information on where to mail the gifts.
Victims of the scam are left with buying and shipping gifts for strangers in hopes that the favor is reciprocated by receiving the promised number of gifts in return but it doesn’t happen.
“Just like any other pyramid scheme, it relies on the recruitment of individuals to keep the scam 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,” the BBB said in a news release.
The BBB recommends the following tips to avoid falling victim to such scams:
- Ignore it! Keep in mind that pyramid schemes are international. Chain letters involving money or valuable items and promise big returns are illegal. Stop and ask, is it worth breaking the law? Report it instead to Canadian agencies or to the U.S. Postal inspection Services.
- Report social media posts. If you receive an invitation to join a pyramid scheme on social media, report it. You can report these Facebook posts by clicking in the upper righthand corner and selecting “Report post” or “report photo.”
- Never give your personal information to strangers. This will open you up to identity theft and other scams.
- Be wary of false claims. Some pyramid schemes try to win your confidence by claiming they’re legal and endorsed by the government. These imposter schemes are false as the government will never endorse illegal activity. No matter what they claim, pyramid schemes will not make you rich. You will receive little to no money back on your “investment” or gift exchange.
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