Secret Santa Scams Are Back

It’s the most wonderful time of the year... for scammers. 

Every December, social media lights up with feel-good promises of holiday cheer, gift exchanges, and “Secret Santa” fun. One version making the rounds again is a so-called gift swap where you buy one gift and magically receive up to 36 in return. 

Spoiler alert: It’s a pyramid scheme. 

How the “Secret Santa” Scam Works 

The scam usually starts with a cheerful post or message that goes something like: 

“Join our Secret Santa gift exchange! You send one $10 gift to someone on the list, then share this message with six friends. You’ll get dozens of gifts in return!” 

Sounds festive, right? Unfortunately, this holiday cheer is powered by a classic pyramid scheme setup, relying on constant recruitment to keep going. Which means someone always gets left out in the cold. 

What’s even worse is that these scams often ask for your name, address, and personal details to participate. That makes it not just disappointing, but potentially dangerous. 

Why It's a Problem

- It’s illegal. Pyramid schemes are banned by the Federal Trade Commission (FTC). Participants can face penalties for mail fraud, among other legal issues. 

- It’s a privacy risk. Sharing your name, home address, and personal info with strangers is never a good idea. 

- It’s a scam in disguise. You won’t get 36 gifts. You’ll likely get zero and your information may be used for future fraud. 

How to Protect Your Holiday Spirit 

- Skip the viral gift chains. Stick to real Secret Santa exchanges with people you actually know and trust. 

- Keep personal info personal. Don’t share your home address with online strangers, no matter how jolly they sound. 

- Report suspicious posts on social media to stop the spread. 

- Educate others. These scams rely on people sharing in good faith, so let your friends and family know what to watch out for. In fact, send them a link to this article! 

Remember, real joy doesn’t come from chain messages; it comes from safe, thoughtful giving.  

Stay Alert, Stay Secure 

Scammers are always evolving their tactics, but staying informed is your best defense. DFCU Financial is committed to helping you protect your money and personal information. 

More tips: 

- If you receive a suspicious call or text, please call us at 888.336.2700 to confirm the message is truly from us.  

- Visit our Security and Fraud Protection page for more support.