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  Geebo 9:00 am on November 10, 2023 Permalink | Reply
  Tags: pyramid scheme ( 11 ), Scams ( 1,354 ), Secret SIster, Secret Sister Gift Exchange ( 4 ), social media ( 79 )   

  Gift exchange scam is back for the holidays 

  

  By Greg Collier

  The old joke says Christmas decorations and sales start earlier every year. Just this year, it seemed like stores started getting into the Christmas spirit as soon as Halloween was over. Well, we have our own indicator of the start of the holiday season, and that’s a pyramid scheme disguised as a Christmas gift exchange.

  Recently, the Better Business Bureau sounded the alarm on what’s called the Secret Sister gift exchange. If you’re unfamiliar with the Secret Sister scheme, it’s a scam primarily directed at women, evident from its name. The process initiates with a social media post urging participants to include their name and address in a list, accompanied by sending a modestly priced gift. In exchange, they are assured of receiving as many as 36 gifts. Additionally, participants are encouraged to enlist at least six more individuals into the gift exchange.

  A clear indicator of the pyramid scheme nature emerges when you’re urged to recruit more participants to progress in the exchange, be it gifts or money. In pyramid schemes, the individuals at the pyramid’s summit enjoy the benefits of the scam, leaving those at the bottom with little to gain and often facing unfavorable outcomes.

  Also, by submitting yours and your friends’ addresses, you’re putting yourself and your friends at risk of being the target of identity theft.

  One alarming aspect of social media pyramid schemes like this is the potential legal consequences for victims. Pyramid schemes are prohibited in the United States, and even if participants are unknowingly exploited, involvement in recruiting others for the exchange could lead them to legal trouble. It’s crucial for individuals to be aware of the legality surrounding such schemes to avoid unintentional legal complications.

  If you receive an online invitation to participate in one of these gift exchanges, it’s advisable to politely decline. However, if the invitation comes from someone close to you, it might be worth explaining the potential risks associated with such exchanges. By doing so, you could potentially save them from encountering significant troubles down the line. Educating those close to you about the perils of these schemes can be a valuable preventive measure.

   

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  Geebo 9:00 am on November 11, 2021 Permalink | Reply
  Tags: identity theft ( 105 ), pyramid scheme ( 11 ), Scams ( 1,354 ), Secret SIster, Secret Sister Gift Exchange ( 4 ), social media ( 79 )   

  Pyramid scheme disguised as gift exchange returns 

  

  By Greg Collier

  With many people already starting their holiday shopping, an annual holiday scam has returned to social media. The Better Business Bureau is warning to consumers to be aware of the Secret Sister Gift Exchange. The scam seems harmless and fun at first. The posts on social media ask you to add your name and address to a list where you send in a small $10 gift. In return, you’re promised to receive up to 36 of the gifts. You’re also asked to recruit at least six more people into the gift exchange. It’s just $10. What could be the harm in that?

  Anytime you’re asked to recruit more people to advance an exchange like this, whether it’s gifts or money, it’s a pyramid scheme. It’s the people at the top of the pyramid who reap the rewards of the scam, while those on the bottom of the pyramid often find themselves empty-handed. That’s not even considering that you sent a stranger your name and address. You basically just paid $10 to have your identity stolen.

  What’s even worse is that by participating in a pyramid scheme, you could potentially face legal action, as pyramid schemes are illegal in the United States. Often, the people who initiate these gift exchanges will swear up and down that the gift exchange is either not a pyramid scheme or is approved by the US Government. They’re either lying or are ignorant of the law. Not only is it illegal to recruit someone into a pyramid scheme like this, since the scheme also uses the US Postal Service, you could also be charged with mail fraud.

  If you have a friend on social media who has engaged in one of these gift exchanges, you might want to warn them about the illegality of it. While your friends may not be the scammers themselves, a short conversation with them may save them from trouble in the long run.

   
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  Geebo 9:00 am on November 13, 2020 Permalink | Reply
  Tags: pyramid scheme ( 11 ), Scams ( 1,354 ), Secret SIster, Secret Sister Gift Exchange ( 4 )   

  Secret Sister scam returns for the holiday season 

  

  It feels a little early for the Better Business Bureau to be warning about holiday scams, but then again it is mid-November already.

  The BBB has issued a national warning about the Secret Sister Gift Exchange scam that seems to crop up on social media around this time of year. If you’re not familiar with the Secret Sister scam, it’s a scam that’s mostly targeted at women as you can tell by the name. It starts when someone posts on social media asking you to add your name and address to a list where you send in a small $10 gift. In return, you’re promised to receive up to 36 of the gifts. You’re also asked to recruit at least six more people into the gift exchange.

  This is how you can tell it’s a pyramid scheme. Anytime you’re asked to recruit more people to advance an exchange like this whether it’s gifts or money, it’s a pyramid scheme. In pyramid schemes, it’s the people at the top of the pyramid who reap the rewards of the scam while those on the bottom of the pyramid often find themselves out of luck.

  Add to that, you’re potentially putting yourself at risk for identity theft. While $10 sounds like a small amount to lose, you could lose more by giving out your personal information.

  The worst part of social media pyramid schemes like this is that a victim could find themselves on the wrong side of the law. Pyramid schemes are illegal in the United States. Even if you’re unaware you’re being taken advantage of if you’re caught recruiting others into the exchange you could find yourself on the wrong side of the law.

  Some of those organizing these exchanges will say that it’s legal or even that it’s approved by the government. That is false.

  If you’re invited to one of these gift exchanges online, just politely decline. However, if it’s someone close to you, you may want to explain to them the perils of the exchange. You could be saving them a lot of trouble.

   
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  Geebo 9:00 am on November 19, 2019 Permalink | Reply
  Tags: Christmas ( 15 ), Christmas shopping ( 22 ), Scams ( 1,354 ), Secret SIster, Secret Sister Gift Exchange ( 4 )   

  The Secret Sister gift exchange scam is back 

  

  With the holiday season fast approaching, so are holiday scams. We recently reminded our readers about the potential abuses of gift cards, now it’s time to remind our readers of another holiday scam that turns up this time of year. The scam we’re referring to is the Secret Sister Gift Exchange. While there are some who swear by it and say that it’s not a scam, in reality, it’s just a pyramid scheme that could see you losing money and your personal information. You could also find yourself in trouble with the law if you participate in one of these gift exchanges.

  These gift exchanges start when someone posts on social media asking you to add your name and address to a list where you send in a small $10 gift. In return, you’re promised to receive up to 36 of the gifts. You’re also asked to recruit at least six more people into the gift exchange. Like most pyramid schemes, the people on the top receive all the gifts, while people at the bottom of the pyramid receive nothing. While $10 sounds like a small amount to lose, you could also be in danger of identity theft or worse by giving out your personal information.

  [youtube https://www.youtube.com/watch?v=TS9KwEnO1Bc%5D

  Also, we can’t stress this enough, these exchanges are illegal in the United States. As we mentioned, they are considered pyramid schemes under the eyes of the law and are also considered to be gambling. That’s not even taking into account that it could also be considered as mail fraud. While you may think you’re just sending a gift to a stranger to brighten up their day, you could actually face potential jail time. If you receive an invitation to a gift exchange like this, just ignore it. Instead, think about using that $10 to make a charitable donation.

   
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  Geebo 10:47 am on November 13, 2018 Permalink | Reply
  Tags: Facebook ( 178 ), scam ( 22 ), Scams ( 1,354 ), Secret SIster   

  Avoid the Secret Sister scam this season 

  

  The old saying goes that the stores start advertising for Christmas earlier and earlier each year. In my opinion, it seemed like as soon as the calendar turned to November, the flood of yuletide advertisements began to assail our televisions and internet devices. The holidays are also a time when scam artists come out in droves since people are more likely to open their hearts and wallets during the holiday season than any other time of the year. This year, an old scam that I haven’t thought about in years is being proliferated through social media and while the risk appears to be minimal, the consequences could have far-reaching effects long after the holidays are over.

  I’m talking about the ‘Secret Sister’ gift exchange where someone posts on social media asking you to add your name to a list where and send in a small $10 gift. In return, you’re promised to receive up to 36 of the gifts. According to the Better Business Bureau not only is this a pyramid scheme, but it’s also illegal since you need to use the US Postal Service to send the gift which can be considered mail fraud. And as usual, when it comes to scams like this, it’s highly unlikely you’ll receive any gifts in return.

  Since the scam seems to proliferate on social networks like Facebook, I decided to see if any of my Facebook friends were soliciting for this scam. While none of my friends were, there were friends of friends who were definitely being taken in by this scam. The post usually looks something along these lines.

  

  The problem with this scam is not only is it illegal as I mentioned above but if you decide to participate in the alleged gift exchange you’re also putting your personal information out to potential strangers who could use the information to their benefit and your detriment. Identity theft comes immediately to mind but the information could be used for even more nefarious purposes.

  Just because a friend of yours may be participating in the Secret Sister exchange on Facebook doesn’t necessarily mean they’re a Bernie Madoff in the making. They could potentially be a victim in all of this. If you’re worried about one of your friends being caught up in this scam, you may want to remind them that the Secret Sister gift exchange is considered illegal and show them this post or the BBB information. People are more likely to start thinking more critically if there’s potential for them to be in trouble with the law. NO one wants to be investigated for mail fraud for the holidays.