Secret Sister scam making rounds again
Giving gifts for the holidays can be one of the most enjoyable parts of the season, especially with gatherings hindered by the COVID-19 pandemic.
It is important to be aware of scams and fraud surrounding the holidays. One scam in particular is the Secret Sister gift exchange one might find circulating around social media websites.
The posts about Secret Sister typically say something along the lines of the following:
“The Secret Sister Gift Exchange is back! I’m looking for six women who would be interested in a pre-holiday gift exchange. You only have to buy one $10 gift and send it to your secret sister. You will then receive 6-36 gifts in return. Let me know if you’re interested and I will send you the information for your secret sister. We all could use some happy mail!”
Though the name “Secret Sister” may not always be mentioned, the most important detail is the claim of receiving six or more gifts in return.
Unfortunately, what appears to be a simple and sweet gift exchange between friends, friends of friends and even strangers is a lot more sinister beneath the surface.
The Better Business Bureau (BBB) has deemed the Secret Sister gift exchange a pyramid scheme, comparing it to chain mail scams.
How is sending a $10 gift to a designated person a scam? It’s all in the set-up.
The people who sign up earliest in the exchange are very likely to in fact receive a gift, or multiple gifts as the origin post states. However, as recruiting people for the exchange continues, the likelihood of receiving a gift in return dwindles.
The Better Business Bureau explains the process in detail, including why after only a couple of rounds of recruitment, the plan no longer works.
“All you must do is provide your name and address and personal information for a few additional friends, and tack this information on to a list that’s already started of people you have never met on the Internet,” the Better Business Bureau explains.
“Next, it’s your turn to send an email or social media invitation to send a modest gift or bottle of wine to a stranger along with their friends, family and contacts.”
“The cycle continues and you’re left with buying and shipping gifts for unknown individuals, in hopes that the favor is reciprocated by receiving the promised number of gifts in return. Unfortunately, it just doesn’t happen.”
BBB continues, explaining how it relies on recruitment of individuals to keep the scam going.
Once people stop participating, or stop inviting, the exchange comes to a halt, leaving people at the middle and bottom of the list giftless, and out any money they’ve spent on a gift for another “sister.”
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