Beware of the Secret Santa scam that targets gift lovers–here’s how to protect yourself!
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As the holiday season approaches, the spirit of giving is in the air, and the idea of a Secret Santa can bring joy and excitement. However, there's a modern twist on this festive tradition that's leaving many with a lump of coal in their stockings.
The Better Business Bureau (BBB) has issued a warning about a scam that's been circulating on social media, known as the “Secret Sister” or “Secret Santa Dog” scam. How can you protect yourself from these schemes?
The scam operates on a tantalizing promise: send one gift and receive up to 36 gifts in return. It sounds like a holiday miracle, but in reality, it's a classic pyramid scheme dressed in holiday cheer.
There are various types of this scam, said the BBB. Some involve an exchange of bottles of wine or bourbon, while others suggest the purchase of $10 gifts.
The scam spreads like wildfire on social media platforms, where unsuspecting users are invited to join a “gift exchange.” They rely on an ever-increasing number of participants to sustain the promised rewards, which is simply not sustainable.
Participants are instructed to send a gift to “sister No. 1” or whoever’s name and address are at the top of the provided list. After buying and sending your gift, you move onto “sister No. 2” then put yourself in second place. Following this, you’re asked to recruit six friends by sending the list and inviting them to join.
Snopes reports that one version of the scam reads, “Soon, you should receive 36 gifts! What a deal, 36 gifts for giving just one! Be sure to include some information about yourself … some of your favorites. Seldom does anyone drop out because it’s so much fun to send a gift to someone you may or may not know … and of course it’s fun to receive.”
Those who fall for the scam often end up sending gifts to strangers and receiving little to nothing in return. It’s also mathematically flawed–considering the scheme won’t grow infinitely and provide benefits to everyone.
The pyramid inevitably collapses when it becomes impossible to recruit new participants, leaving many disappointed and out of pocket.
Moreover, engaging in these schemes can have legal repercussions, as they are considered illegal gambling by the U.S. Postal Inspection Service.
To avoid falling victim to the Secret Santa scam, here are some steps you can take:
1. Be Skeptical: If an offer seems too good to be true, it probably is. Be wary of any gift exchange that promises more than it asks for.
2. Know the Signs: Pyramid schemes often involve recruiting others and promise exponential returns. Recognizing these red flags can help you steer clear.
3. Protect Your Information: Never give out personal information to strangers online. This includes your address, which is often requested in these scams.
4. Report Suspicious Activity: If you encounter one of these scams, report it to the social media platform and consider informing the BBB or the U.S. Postal Inspection Service.
5. Educate Others: Share this information with friends and family, especially those who may not be as familiar with online scams.
6. Choose Legitimate Exchanges: If you enjoy gift exchanges, participate in well-known and reputable programs, or organize them within your trusted circle.
Have you or someone you know encountered a Secret Santa scam? What measures do you take to ensure your online safety during the holiday season? Share your experiences and tips in the comments below!
The Better Business Bureau (BBB) has issued a warning about a scam that's been circulating on social media, known as the “Secret Sister” or “Secret Santa Dog” scam. How can you protect yourself from these schemes?
The scam operates on a tantalizing promise: send one gift and receive up to 36 gifts in return. It sounds like a holiday miracle, but in reality, it's a classic pyramid scheme dressed in holiday cheer.
There are various types of this scam, said the BBB. Some involve an exchange of bottles of wine or bourbon, while others suggest the purchase of $10 gifts.
The scam spreads like wildfire on social media platforms, where unsuspecting users are invited to join a “gift exchange.” They rely on an ever-increasing number of participants to sustain the promised rewards, which is simply not sustainable.
The Better Business Bureau warns about a recurring secret Santa-inspired scam operating on social media. Image source: Pexels / Porapak Apichodilok.
Participants are instructed to send a gift to “sister No. 1” or whoever’s name and address are at the top of the provided list. After buying and sending your gift, you move onto “sister No. 2” then put yourself in second place. Following this, you’re asked to recruit six friends by sending the list and inviting them to join.
Snopes reports that one version of the scam reads, “Soon, you should receive 36 gifts! What a deal, 36 gifts for giving just one! Be sure to include some information about yourself … some of your favorites. Seldom does anyone drop out because it’s so much fun to send a gift to someone you may or may not know … and of course it’s fun to receive.”
Those who fall for the scam often end up sending gifts to strangers and receiving little to nothing in return. It’s also mathematically flawed–considering the scheme won’t grow infinitely and provide benefits to everyone.
The pyramid inevitably collapses when it becomes impossible to recruit new participants, leaving many disappointed and out of pocket.
Moreover, engaging in these schemes can have legal repercussions, as they are considered illegal gambling by the U.S. Postal Inspection Service.
To avoid falling victim to the Secret Santa scam, here are some steps you can take:
1. Be Skeptical: If an offer seems too good to be true, it probably is. Be wary of any gift exchange that promises more than it asks for.
2. Know the Signs: Pyramid schemes often involve recruiting others and promise exponential returns. Recognizing these red flags can help you steer clear.
3. Protect Your Information: Never give out personal information to strangers online. This includes your address, which is often requested in these scams.
4. Report Suspicious Activity: If you encounter one of these scams, report it to the social media platform and consider informing the BBB or the U.S. Postal Inspection Service.
5. Educate Others: Share this information with friends and family, especially those who may not be as familiar with online scams.
6. Choose Legitimate Exchanges: If you enjoy gift exchanges, participate in well-known and reputable programs, or organize them within your trusted circle.
Have you or someone you know encountered a Secret Santa scam? What measures do you take to ensure your online safety during the holiday season? Share your experiences and tips in the comments below!
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