The holidays are a time for generosity, connection, and giving back – which is exactly why scammers ramp up their activity this time of year. One scheme that resurfaces every holiday season is the “Secret Sister” gift exchange scam, often disguised as a Secret Santa-style tradition on social media.

While the idea sounds harmless and festive, this “gift exchange” is actually an illegal pyramid scheme designed to benefit only a few people at the top, while leaving most participants with empty hands and in some cases – lost money.

Here’s how the scam works, what to watch out for, and how to protect yourself and your family.

What Is the “Secret Sister” Scam?

This scam typically appears on platforms like Facebook, Instagram, and WhatsApp. A post usually invites you to join a gift exchange where you’ll:

• Send one gift (often $10–$20 in value) to a stranger.
• Add your name to a list.
• Share the post with friends so more gifts come back to you.

The promise? If enough people join, you’ll receive multiple gifts in return.

In reality, very few participants ever receive anything. The system only works for the first few people at the top, making it a classic pyramid scheme – which is illegal in the U.S.

Why This Scam is So Dangerous

While it may seem like “just a gift,” this scam can lead to:

• Financial loss.
• Sharing personal information with strangers.
• Increased risk of identity theft.
• Friends unintentionally scamming friends.

Even worse, many people unknowingly help spread the scam by reposting it.

Common Red Flags to Watch Out For

If you see a post that includes any of the following, proceed with extreme caution:

• Promises of receiving multiple gifts in return for sending just one.
• Being asked to send a gift to someone you don’t know.
• Instructions to copy and paste the post exactly as it appears.
• Requests to share in multiple groups.
• Pressure to act quickly.

If it sounds too good to be true, it usually is!

What to Do if You See the Scam

If you encounter a “Secret Sister” post:

1. Do not participate.
2. Do not share the post.
3. Report the post on the social platform.
4. Let the person who posted it know, as they may not realize it’s a scam.

Helping to stop the spread protects others in your community, too.

How First Financial Helps Keep You Safe

At First Financial, protecting your financial well-being is our top priority. Our team is always here to help you:

• Spot common scams and fraud trends.
• Secure your accounts.
• Understand safe ways to give during the holidays.
• Recover as quickly as possible if suspicious activity occurs.

If you ever have questions about a suspicious message or payment request – contact us right away. It’s always better to ask if you are unsure, than to risk your financial security.

The Bottom Line

The “Secret Sister” scam thrives during the season of giving because it taps into trust, generosity, and community – but true holiday spirit should never come with financial risk. This year, protect yourself and your loved ones by staying informed, trusting your instincts, and choosing safe, legitimate ways to spread holiday cheer.

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