With airline miles becoming increasingly lucrative to sell, thousands of flyers are looking to cash in on their unused rewards. However, the growing mileage resale market has given rise to scammers seeking to prey on eager sellers through elaborate ruses and deception. Avoiding fraud requires knowledge of common scam tactics, how to vet brokers, and steps to take for your own protection.
One of the most common mileage scams involves upfront fees. Scammers will create professional-looking fake brokerage websites advertising excellent buy-back rates. However, they require an initial fee allegedly to "list" or "facilitate" the sale of your miles – which can range from $50 to over $500. These fees are simply pocketed by the scammers, who disappear after payment is received. Legitimate brokers never require upfront payment of any kind. Be highly suspicious of any company asking for money before securing a sale of your miles.
Another scam tactic is mileage theft, where sellers are tricked into handing over login credentials or mileage account details. Scammers pose as interested “buyers” over email or classified sites. After gaining access to accounts, they drain and transfer miles before disappearing. Never provide full account login information or passwords to someone you don’t know is trustworthy. If selling directly, only furnish the minimum details needed for award booking.
Phishing scams also proliferate, often using fake airline branding and logos. Fraudulent websites or emails designed to mimic legitimate businesses are used to harvest personal and financial information. Before inputting anything sensitive online, double check the URL and sender’s email address. Call the company directly to confirm any odd communications. Signs of phishing include suspicious links, typos, threatening language demanding immediate action, or requests for sensitive data.
Researching brokers thoroughly before agreeing to sell miles is critical. Check for valid company addresses, customer reviews, complaints with the Better Business Bureau, and confirmation of escrow payment services. It pays to vet before providing mileage account data. Also consider transfer options. Rather than having a broker sell your miles, you can transfer them to mileage partners or loyalty programs allowing cash redemptions. This avoids potential broker scams.
Protect yourself by minimizing account information shared, reviewing activity and statements regularly, and reporting unauthorized transfers immediately to shut down redemption. Only broker through reputable companies known for satisfactory seller experiences. While scams abound, safe selling of airline miles remains possible with self-education and precaution. Avoiding the pitfalls means you can still take advantage of the lucrative mileage resale market.
Another scam tactic is mileage theft, where sellers are tricked into handing over login credentials or mileage account details. Scammers pose as interested “buyers” over email or classified sites. After gaining access to accounts, they drain and transfer miles before disappearing. Never provide full account login information or passwords to someone you don’t know is trustworthy. If selling directly, only furnish the minimum details needed for award booking.
Phishing scams also proliferate, often using fake airline branding and logos. Fraudulent websites or emails designed to mimic legitimate businesses are used to harvest personal and financial information. Before inputting anything sensitive online, double check the URL and sender’s email address. Call the company directly to confirm any odd communications. Signs of phishing include suspicious links, typos, threatening language demanding immediate action, or requests for sensitive data.
Researching brokers thoroughly before agreeing to sell miles is critical. Check for valid company addresses, customer reviews, complaints with the Better Business Bureau, and confirmation of escrow payment services. It pays to vet before providing mileage account data. Also consider transfer options. Rather than having a broker sell your miles, you can transfer them to mileage partners or loyalty programs allowing cash redemptions. This avoids potential broker scams.
Protect yourself by minimizing account information shared, reviewing activity and statements regularly, and reporting unauthorized transfers immediately to shut down redemption. Only broker through reputable companies known for satisfactory seller experiences. While scams abound, safe selling of airline miles remains possible with self-education and precaution. Avoiding the pitfalls means you can still take advantage of the lucrative mileage resale market.
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