A gift exchange called “Secret Sister” that has spread through social media is actually just a gift-wrapped pyramid scheme, according to the Better Business Bureau.
The concept is advertised as a way to connect people and spread the joy of the holiday season -- cheery posts or group invitations spread through Facebook claim that all participants have to do is purchase one gift, usually valued at around $10, provide basic information such as their full name and address, and encourage their friends and acquaintances to sign up as well. They would receive info on where to send their gifts later, BBB said.
After signing up, your information joins a list made up of the strangers who signed up before you. You then have to send the list and the invitation along to your own friends, and wait for further instruction. Without a maximum cap of people and an even number of people to match up like in a regular Secret Santa, the gift supply ends when the chain fails to find new participants. This means that hundreds of people could end up disappointed, not having received any gifts in return themselves.