Local

'Secret Sister' gift exchange scam is back

CHARLOTTE, N.C. — The Better Business Bureau is reminding consumers to ignore any invitations to participate in the "Secret Sister" gift exchange or any other similar gift chains.

The gift chain is particularly popular on Facebook around the holiday season.

The post claims participants in the exchange can receive up to 36 gifts if they send one gift valued at the $10 and are encouraged to invite their friends to participant in the exchange as well.

According to the U.S. Postal Inspection Services, these types of gift exchanges are called "pyramid schemes" and are illegal. Participants in these activities could be subject to penalties for mail fraud.

HOW THE SCHEME WORKS, according to the BBB:

  • If a consumer purchases one gift for a stranger, he or she can receive as many as 36 gifts in return
  • It may seem reasonable -- Six friends, invite six more friends who all send gifts to the participant in spot one before that person's name is removed
  • The process then repeats itself with the participant in the second spot, third spot, and so on
  • The gift chain does ask you to disclose your personal information such as your home address

The BBB encourages anyone who sees the "Secret Sister" post on social media to report the post by clicking on the three little dots in the upper right corner of the post.

If you receive it through a chain letter by mail or by email, the BBB recommends that you ignore it.

For more information, click here

To report a scam to the BBB Scam Tracker, click here

Read more top trending stories on wsoctv.com: