Scam Alert: Social media gift exchange is an illegal pyramid scheme
A “Secret Santa”-esque gift exchange has been widely spread across social media during the holiday season since 2015. Albeit interesting
— it’s actually an illegal pyramid scheme, according to Better Business Bureau.
The viral post usually lays out the rules for a “Secret Sister” gift exchange that promises participants will receive 36 gifts, in exchange for sending one gift. Each year, the scheme pops back up.
Just like any other pyramid scheme, it relies on the recruitment of individuals to keep the scam afloat. Once people stop participating, the gift supply stops, and leaves hundreds of people are disappointed and without their promised gifts.
Here’s what to do if you come across one of these scams:
You can report these Facebook posts by clicking in the upper-righthand corner and selecting “Report post” or “report photo.”
Be wary of false claims.
Never give your personal information to strangers.
— it’s actually an illegal pyramid scheme, according to Better Business Bureau.
The viral post usually lays out the rules for a “Secret Sister” gift exchange that promises participants will receive 36 gifts, in exchange for sending one gift. Each year, the scheme pops back up.
Just like any other pyramid scheme, it relies on the recruitment of individuals to keep the scam afloat. Once people stop participating, the gift supply stops, and leaves hundreds of people are disappointed and without their promised gifts.
Here’s what to do if you come across one of these scams:
- Ignore it!
- Report social media posts.
You can report these Facebook posts by clicking in the upper-righthand corner and selecting “Report post” or “report photo.”
Be wary of false claims.
Never give your personal information to strangers.