The Return of the Secret Santa Scam

By Greg Collier

Every December, the holiday scammers come out right on schedule. One minute you’re scrolling past endless “early Black Friday deals,” and the next, your feed is full of cheerful chain posts promising that if you just send a $10 gift to a stranger, the universe will reward you with dozens in return.

According to the Better Business Bureau, these “Secret Santa” chains aren’t generosity. They’re data harvesting dressed up as holiday spirit.

What’s Going On:

The scam shows up as Facebook posts promoting a feel-good gift exchange. They ask you to buy a small $10 present and send it to someone on a list. In return, you’re promised multiple gifts sent by other participants.

This year, there are several variations:

  • Basic $10 gift swaps
  • “Wine exchange” or “bourbon exchange” twists
  • “Send money to a name on this list” versions
  • “Secret Santa Dog” for pet-themed gifts

Regardless of the theme, the underlying mechanics stay the same. The BBB says these exchanges fall under illegal pyramid schemes, and they’re not designed to bring joy to strangers. They’re designed to collect your email address, your home address, and your friends’ information.

BBB of Eastern Carolinas spokesperson Nicole Cordero highlights the danger:

“With this Secret Santa, you’re supposed to invite your friends on Facebook or on other social media, and it tricks even more people into this scam. It’s likely not to pay it forward. It is likely scammers trying to get your information.”

In other words, your $10 gift is not the real commodity here. Your personal information is.

Scam Breakdown:

Here’s how the Secret Santa pyramid scheme functions behind the scenes:

1. The Hook

A friendly, sentimental social media post invites you to participate in a “wholesome” holiday tradition for just ten dollars.

2. The Social Multiplier

Participants are instructed to share the post, tag friends, or invite others to join. This snowballs the scam outward through friend networks—prime territory for data collection.

3. The Data Harvest

The scammers collect the information people volunteer: emails, mailing addresses, and sometimes even phone numbers. This data can be used for identity fraud, resale to marketing lists, phishing attempts, or future scams.

4. The Empty Return

You send a gift, but the promised dozens of gifts never arrive. Meanwhile, scammers walk away with a growing list of personal information from you and everyone you invited.

Red Flags:

  • Promises that you’ll “get many gifts back” for sending one
  • Requests for your email address or home address
  • Instructions to invite friends to expand the exchange
  • Tempting photos or themes (wine bottles, dogs in Santa hats, etc.) used only to lure people in
  • Any “exchange” that needs recruitment to function

If it requires you to recruit others to get a return, it’s a pyramid scheme—no matter how much fake holiday cheer it’s wrapped in.

Quick Tip: Never hand over personal information to strangers through a social media chain post. If a holiday exchange relies on multiplying through your friend network, it’s not a community activity. It’s a scam.

What You Should Do:

The BBB advises consumers to:

  • Scroll past these posts
  • Do not reply or sign up
  • Report them to the BBB Scam Tracker and the social media platform where you saw them

Protecting your personal information is far more meaningful than taking part in a fake gift exchange.

Further Reading:

Discover more from Greg's Corner

Subscribe to get the latest posts sent to your email.