A “Secret Santa” around the office, friends, and family can be fun. A “Secret Sister” gift exchange among online friends you haven’t met, well, that’s a little different and carries a heftier consequence. These gift exchanges, while they look like innocent fun, are really pyramid schemes – and are considered illegal.
The “Secret Sister” gift exchange campaign quickly became popular in 2015 through Facebook posts promising participants would receive up to 36 gifts, in exchange for sending one gift, valued at $10. Users were encouraged to invite others to participate in the holiday gift exchange, then promised they would receive information on where to mail the gifts. This is a classic pyramid scheme and should be avoided.