How Fraudsters Bilked American Airlines and Citibank in Frequent Flyer Schemes
Skift Take
Airlines have complete control over their frequent flyer programs. They can take your miles for nearly any reason. It is probably not a good idea to try to defraud them.
American Airlines is telling the U.S. Department of Transportation your pet dog cannot apply for a credit card. Nor can you apply for a credit card using other fraudulent means.
Lawyers for the airline made that clear this week in a 53-page document alleging some loyalty program members recently took part in an "elaborate scheme involving misrepresentations to create bogus accounts" so they could earn bonus miles. These people, American said, repeatedly applied for American's Citibank credit card, reaping a hefty sign-up bonus each time. The airline called it a clear violation of program rules.
American's filing is a response to one individual, who made a complaint with the Department of Transportation alleging the airline unfairly terminated her frequent flyer accounts for fraud. According to American, the woman, along with her daughter and her son-in-law, opened at least 45 Citi credit cards in a four-year period, earning more than 1.4 million miles in new account mileage bonus
