By Times Chronicle Staff

With festivities ramping up for the Christmas holiday season sadly so too are the scams.  In particular, the Better Business Bureau is warning the public to be aware of the “Secret Sister” scam. If a Secret Sister asks you to be a part of her gift exchange, if you’re not careful you might be swindled for your kindness.

The gift exchange campaign quickly became popular several years ago through social media posts promising participants would receive multiple gifts in exchange for sending one gift. Each holiday season, these schemes come back with new variations disguised as holiday cheer, says the BBB.

One version of this scam revolves around exchanging bottles of wine or bourbon; another suggests purchasing $10 gifts online. You might see references to receiving “happy mail” or doing the exchange “for the good of the sisterhood.” During the 2024 holiday season, be aware of variations of this theme that may crop up on social media.

How this scam works

The scheme starts with a convincing invitation, either by email or social media, to sign up for a great, fun program. All you must do is provide your name, address, and the personal information of a few additional friends to add on to a list that’s already started of people you’ve never met on the Internet. 

Next, it’s your turn to send an email or social media invitation to join the gift exchange and send a modest gift to a stranger along with their friends, family, and contacts.

A newer twist on the idea asks you to give your e-transfer email and ask users to pick a name off a list and send money to strangers to “pay it forward.” There was another new twist called “Secret Santa Dog,” in which you are asked to buy a $10 gift for a “secret dog.” 

The BBB warns that in all of these versions, you give away your personal information, and you’re left buying and shipping gifts or money to unknown individuals, hoping that someone else will reciprocate the favour by sending the promised number of gifts in return. With just a few pieces of information, cyber thieves could expose you to future scams or commit identity theft.

This most often doesn’t happen and the BBB says that 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.

Protect yourself

  • Ignore it! Keep in mind that pyramid schemes are international. Chain letters involving money or valuable items and promising big returns are illegal.  
  • Report it to the social media platform. If you receive an invitation to join a pyramid scheme on social media, report it to the platform. 
  • Never give your personal information to strangers. Even your mailing address can expose you to identity theft and other scams. 
  • Be wary of false claims. Some pyramid schemes try to win your confidence by claiming they’re legal and endorsed by the government. These impostor schemes are false and no matter what they claim, pyramid schemes will not make you rich. 

Top 12 festive scams

  • Misleading social media ads
  • Social media gift exchanges
  • Holiday smartphone apps
  • Fake toll collection texts
  • Free gift cards
  • Temporary holiday jobs
  • Impostor scams
  • Fake charities
  • Fake shipping notifications
  • Advent calendars
  • Holiday wish list items
  • Puppy scams

Stay safe this holiday season with the BBB’s tips on avoiding common scams by visiting their holiday headquarters page. 

If you’ve been the victim of a scam, report it to BBB Scam Tracker. Sharing your experience can help others avoid falling victim to similar scams.