Multiple Faces Detected
December 5th, 2023
Participating in a “Secret Santa” within your office or with friends and family can be enjoyable, but engaging in a gift exchange with online acquaintances you haven’t met carries more significant consequences. Despite their appearance of harmless fun, these gift exchanges are, in fact, pyramid schemes and are against the law.
Several years ago, the “Secret Sister” gift exchange gained popularity through Facebook posts, enticing participants with the promise of receiving up to 36 gifts by sending just one. Unfortunately, this scheme resurfaces each holiday season, and new versions have emerged, such as exchanging bottles of wine or suggesting the purchase of $10 gifts online. Phrases like “happy mail” or the notion of participating “for the good of the sisterhood” may be associated with these exchanges. As we approach the 2023 holiday season, it’s crucial to remain vigilant for variations of this theme that may appear on social media.
How the scam works
The scam initiates with a seemingly enticing invitation, often delivered via email or social media, urging you to join a purportedly enjoyable program. The simple task is to furnish your name, address, and the personal details of a few friends, appending this information to an existing list of unfamiliar internet acquaintances. Following this, it becomes your responsibility to extend the invitation by email or social media, prompting the sending of a modest gift or a bottle of wine to a stranger, accompanied by their friends, family, and contacts.
A recent variation introduces a novel concept where you disclose your e-transfer email, encouraging users to select a name from a list and send money to strangers as a form of “paying it forward.” Another twist, known as “Secret Santa Dog,” requires participants to procure a $10 gift for an undisclosed canine recipient.
Across these iterations, participants willingly divulge their personal information, engaging in the exchange of purchased gifts or money with unknown individuals, hopeful that the promised reciprocity of gifts will materialize. Regrettably, as is the nature of any pyramid scheme, its sustenance hinges on continuous recruitment. Once participation dwindles, so does the supply of gifts, leaving a multitude of disappointed individuals bereft of the anticipated gifts or cash.
It should be noted that pyramid schemes are illegal in the US and Canada.
The U.S. Postal Inspection Service underscores that involvement in these gift exchanges falls under the category of gambling, with potential consequences for participants ranging from jail time and fines to legal action for mail fraud.
Participating in these schemes introduces an additional layer of risk. When registering, the purported campaign organizer solicits personal information such as mailing addresses or emails. With just a handful of details, cybercriminals could subject you to future scams or perpetrate identity theft.
If someone pledges an abundance of gifts or cash through mail, email, or social media, the Better Business Bureau (BBB) strongly advises the following:
- Disregard it! Remember that pyramid schemes operate globally. Chain letters soliciting money or valuable items with promises of significant returns are unlawful. Pause and question, is it worthwhile to break the law? Instead, report it to Canadian authorities or the U.S. Postal Inspection Service.
- Flag social media content. Should you receive an invitation to partake in a pyramid scheme on social media, flag it for review on Facebook by clicking on the upper right-hand corner and choosing either “report post” or “report photo.
- Refuse to disclose personal information to unfamiliar individuals. Doing so leaves you vulnerable to identity theft and other fraudulent schemes.
- Exercise caution regarding deceptive assertions. Certain pyramid schemes may attempt to gain your trust by falsely asserting their legality and purported endorsement by the government. These fraudulent claims are baseless, as the government never supports illegal activities. Regardless of their proclamations, pyramid schemes are not a pathway to wealth. Participants typically receive minimal to no returns on their “investment” or involvement in a gift exchange.
