If you are participating in a gift exchange that involves sending a particular item to a designated number of people– rather than doing something nice, you’re actually breaking the law.
Better Business Bureau South Dakota state director Jessie Schmidt says the “Secret Sister” and similar chain gift exchanges are illegal and should be ignored.
She says participating is federal crime.
In-person “Secret Santa” type gift exchanges though, are allowed.
Years ago, versions of the “Secret sister” pyramid scheme were primarily passed along through the mail, but Schmidt says these days they’re being spread on social media.
If you see a pyramid scheme type post, Schmidt recommends reporting to the social media platform’s administrator.
For more information on scams, check out BBB.org/ScamTips. To report scams to the Better Business Bureau, go to BBB.org/ScamTracker.
Hear more from Schmidt in the latest KGFX Beyond the Mic podcast. Subscribe for free through Spotify, Google Play, Podbean or iTunes.
