Scam of the Week: Don't be duped by Facebook holiday 'gift exchange'

Dreama Jensen of the Better Business Bureau says a “chain of gifts“ scam is making the rounds on Facebook

Dreama Jensen of the Better Business Bureau of Northern Indiana says there is a pyramid scheme taking place on Facebook right now that’s enticing users to take part in a holiday gift exchange, just in time for the holidays. And your friends could be posting it to your wall — possibly without even knowing it.

The way it works is simple. You spot a message from someone you know on social media inviting you to join a gift exchange. You’re told to buy one gift for a stranger worth $10, and you’ll receive as many as 36 gifts in return. Some people even go so far as to post photos of gifts they claim to have received through the exchange.

If this sounds familiar, it’s because it’s really just the online version of the old “chain letter” and pyramid scams that have been duping people for decades.

Dreama says the hoax encourages you to send money to the person at the top of the list with the promise that your name will move to the top of that list if you invite others to join behind you. But it’s really designed to keep you from ever actually benefiting from it.

Furthermore, these schemes are actually a form of gambling...which makes them illegal in the United States and Canada.

Some of these messages also include shortened links, and those can be used to hide malicious websites and downloads. And remember that a message that looks like it’s from a friend may not be.

If you’re invited to join one of these gift exchange scams on Facebook orInstagram, the BBB recommends that you contact their customer service to report them.

As always, you can reach out to the BBB of Northern Indiana with questions or concerns. Call them locally at 675-9351, or dial 800-552-4631. You can also visit them online at BBB.org.