Multiple Faces Detected
December 19th, 2023
Participating in a “Secret Santa” within your office or with friends and family can be a delightful experience. However, engaging in a gift exchange with online acquaintances whom you haven’t met in person takes a different turn and involves more severe consequences. Despite the appearance of harmless enjoyment, these online gift exchanges are not innocent fun—they operate as pyramid schemes and are illegal.
The infamous “Secret Sister” gift exchange, which gained popularity a few years back, promises participants up to 36 gifts in return for sending just one. Despite being flagged as a pyramid scheme, this dubious campaign resurfaces each holiday season, luring individuals through Facebook posts. A recent variation involves exchanging bottles of wine, while another suggests the exchange of $10 online gifts. You may encounter phrases like receiving “happy mail” or participating “for the good of the sisterhood.” As the 2023 holiday season approaches, it’s crucial to stay vigilant against the resurgence of these schemes on social media.
The Mechanics of the Scheme
The ploy commences with a compelling invitation, whether through email or social media, enticing you to join an exciting program. To enroll, you simply share your name, address, and the personal details of a few friends, appending this information to an existing list of unfamiliar individuals on the internet. Subsequently, it becomes your responsibility to extend the invitation, via email or social media, to send a modest gift or bottle of wine to a stranger, along with their friends, family, and contacts.
A modern iteration of this concept involves disclosing your e-transfer email and urging users to select a name from a list and send money to strangers as a form of “paying it forward.” Another variation, known as “Secret Santa Dog,” prompts participants to purchase a $10 gift for a concealed canine recipient.
In all these iterations, you divulge your personal information, committing to the purchase and shipment of gifts or funds to unknown recipients, all in the anticipation of receiving the promised number of gifts in return. Regrettably, the reciprocity doesn’t materialize. Similar to any pyramid scheme, its sustainability relies on recruiting new participants. Once engagement wanes, the gift supply dwindles, leaving numerous disappointed individuals without the gifts or cash they were promised.
According to the U.S. Postal Inspection Services, engaging in these gift exchanges is categorized as a form of gambling, and participants may face penalties such as jail time, fines, or even legal action for mail fraud.
Participating in these schemes carries an additional layer of risk. During the sign-up process, the purported campaign organizer requests personal information like your mailing address or email. With just a few pieces of information, cybercriminals could potentially subject you to future scams or commit identity theft.
If someone pledges an abundance of gifts or cash via mail, email, or social media, the BBB strongly advises the following precautions:
- Disregard it! Remember that pyramid schemes operate globally. Chain letters soliciting money or valuable items with promises of substantial returns are against the law. Pause and ponder, is it worth violating the law? Instead, report it to Canadian authorities or the U.S. Postal Inspection Services.
- Take action against social media posts. If you encounter an invitation to participate in a pyramid scheme on social media, promptly report it to Facebook by clicking on the upper right-hand corner and selecting “report post” or “report photo.”
- Guard your personal information from strangers. Revealing such details could expose you to identity theft and various scams.
- Exercise caution regarding false claims. Certain pyramid schemes attempt to gain trust by asserting their legality and alleged government endorsement. These deceptive claims are unfounded, as the government never endorses illegal activities. Regardless of their assertions, pyramid schemes won’t lead to wealth; your “investment” or gift exchange is likely to yield minimal to no returns.
