The Better Business Bureau (BBB) is warning the public about a pyramid scheme that comes around during the holidays called “Secret Sister” gift exchange.
This scheme has been around since at least 2015 and will come to you in an email or social media invitation to join. All you have to do is to give a $10 gift to the next person on a list. Then you need to give your name, address, and some other personal information, along with the personal information of some of your friends to the list. Then you need to invite 6 of your friends to the list. Your reward is gifts from up to 36 members on the list.
It sounds so easy. But like other pyramid schemes, the key to keeping the scheme going is to continuously recruit new members. When people stop participating, the gift supply stops. Individuals rarely receive 36 gifts. Most people are disappointed.
This latest version of the scheme has an added twist of asking for personal information, an opportunity for an identity thief to collect personal information from many people.
The BBB recommends,
·
Ignore pyramid schemes. If you are
invited to join a Secret Sister exchange or another pyramid scheme ignore it. You
will avoid losing money. Plus, the US Postal Inspection Service warns that participating
in a pyramid scheme is against federal law.
·
Report pyramid schemes. Report invitations
to take part in a pyramid scheme to the U.S. Postal Inspection Service at https://www.uspis.gov/report/. You can
also report pyramid invitations that come through Facebook by clicking on the
upper righthand corner and selecting “Report post” or “Report photo.”
·
Never give your personal information to strangers. The fact that the
Secret Sister exchange asks for personal information should also be a warning
not to participate.
·
Be wary of false claims. A pyramid scheme
might claim that they are legal and are endorsed by the government. This is not
true!
Better Business
Bureau:
https://www.bbb.org/article/scams/18854-bbb-warning-secret-sister-gift-exchange-is-illegal
U.S, Postal
Inspection Service:
https://www.uspis.gov/news/scam-article/pyramid-schemes/
Identity Theft
Resource Center:
https://www.idtheftcenter.org/secret-sisterhood-scam-alert/
USA Today:
Snopes:
https://www.snopes.com/fact-check/secret-sisters-gift-exchange/
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