Don’t fall for this secret Santa gift scam
(NEXSTAR) – A secret Santa-inspired scam is making its rounds again on social media, the Better Business Bureau warns. You may see it being called "Secret Sister" or "Secret Santa Dog" – but either way, it's illegal. The scam catches people's attention with a too-good-to-be-true promise: send one gift and you'll receive as many as 36 presents in return. There are many variations, the BBB says. Some involve exchanging bottles of wine or bourbon, some suggest buying $10 gifts. All variations are illegal because it's not really a gift exchange – it's a pyramid scheme. These pyramid schemes spread on social media, where you'll be invited to join the "gift exchange." The scheme instructs you start by sending a gift to "sister No. 1" – or whoever has their name and address at the top of the distributed list. Once you buy and send your gift, you're told to move "sister No. 2" into the top spot, and put yourself in second place. Then, you're told to send this version of the list to six friends, inviting them to join in. "Soon you should receive 36 gifts! What a deal, 36 gifts for giving just one! Be sure to include some information about yourself ... some of your favorites. Seldom does anyone drop out because it's so much fun to send a gift to someone you may or may not know ... and of course it's fun to receive," reads one version of the popular scam cited by Snopes. The problem? People who fall for it end up shipping gifts off to strangers, and hardly ever receive anything in exchange. Plus, it's mathematically impossible for the scheme to grow infinitely and benefit everyone. "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," explains the BBB. These types of scams aren't just disappointing – they're also illegal, the U.S. Postal Inspection Service says. The BBB advises ignoring these types of gift exchanges if you see them online, or reporting it to the social media platform.
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(NEXSTAR) – A secret Santa-inspired scam is making its rounds again on social media, the Better Business Bureau warns. You may see it being called "Secret Sister" or "Secret Santa Dog" – but either way, it's illegal.
The scam catches people's attention with a too-good-to-be-true promise: send one gift and you'll receive as many as 36 presents in return.
There are many variations, the BBB says. Some involve exchanging bottles of wine or bourbon, some suggest buying $10 gifts. All variations are illegal because it's not really a gift exchange – it's a pyramid scheme.
These pyramid schemes spread on social media, where you'll be invited to join the "gift exchange." The scheme instructs you start by sending a gift to "sister No. 1" – or whoever has their name and address at the top of the distributed list.
Once you buy and send your gift, you're told to move "sister No. 2" into the top spot, and put yourself in second place. Then, you're told to send this version of the list to six friends, inviting them to join in.
"Soon you should receive 36 gifts! What a deal, 36 gifts for giving just one! Be sure to include some information about yourself ... some of your favorites. Seldom does anyone drop out because it's so much fun to send a gift to someone you may or may not know ... and of course it's fun to receive," reads one version of the popular scam cited by Snopes.
The problem? People who fall for it end up shipping gifts off to strangers, and hardly ever receive anything in exchange. Plus, it's mathematically impossible for the scheme to grow infinitely and benefit everyone.
"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," explains the BBB.
These types of scams aren't just disappointing – they're also illegal, the U.S. Postal Inspection Service says. The BBB advises ignoring these types of gift exchanges if you see them online, or reporting it to the social media platform.
