'Secret Sister' Gift Exchanges Are Illegal Pyramid Schemes, Better Business Bureau Says
ARLINGTON, Va. (CBS) – The Better Business Bureau has issued a warning about a scam on social media. The agency said in a recent notice that "Secret Sister" gift exchanges are against the law.
"Secret Sister" has circulated on social media for years, becoming popular in 2015. People are asked to buy and mail a gift to a stranger, and in return they are told they'll receive a certain number of gifts. They're also encouraged to invite other people to the gift exchange.
"These gift exchanges, while they look like innocent fun, are really pyramid schemes – and are considered illegal," the BBB said in a statement.
Both the United States and Canada consider pyramid schemes illegal. The BBB notes that the U.S. Postal Service says these gift exchanges are gambling and "participants could be subject to penalties such as jail time, fines or a lawsuit for mail fraud."
In addition, the BBB says that "Secret Sister" asks for personal information like a mailing address or an email, which could put participants at risk for identity theft.
