Fighting for missing miles put the kibosh on this family's elaborate scheme
What happens when you've got an award ticket that was significantly changed due to coronavirus-related service reductions?
Most people can simply call up their airline and request to have their miles reinstated and taxes refunded. But not for fraudsters.
One group of schemers tried calling the American Airlines reservations department at least 19 times in order to find an agent willing to redeposit their miles. But they couldn't find one to agree.
Why? Read on to find out.
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The basics of what happened
At the end of 2019, we reported that some AAdvantage members were having their accounts shut down due to allegedly violating program rules.
The shutdowns were due to opening multiple credit card accounts using targeted mailers that were sent to other members.
Standard Citi credit card offers restrict cardholders from earning a sign-up bonus if the potential cardholder has received a new account bonus in the past 48 months. However, these targeted mailers didn’t have this restriction in the fine print. So, people were using these mailers to apply for credit card accounts and earn credit card sign-up bonuses without being limited to the aforementioned restrictions.
Some people really took advantage of this loophole. Maria Borges, her daughter and son-in-law managed to open a shocking 45 new Citi credit card accounts over a four-year period. They amassed over 1.4 million AAdvantage miles in the process across 16 frequent flyer accounts, according to government documents.
AA started to catch wind of what the Borges family was doing. The airline started closing down some of the AAdvantage accounts for fraud, prompting the children to redeem miles for two first-class flights from Miami to Maui.
Well, in mid-March there was a schedule change on the flights to Hawaii, and the son-in-law and his father tried to get the miles redeposited to a (voluntarily) closed account. It took them over 19 tries without success.
And then Maria Borges decided to file a formal complaint with the U.S. Department of Transporation for the missing miles.
Related: AA and Citi have reminded us we have to play by the rules
American's response to the DOT complaint
In a 53-page response to the complaint, American Airlines clearly outlines the many steps of the alleged fraud.
This includes signing up for accounts under fictitious names such as "Bubbles," as well as using Gmail aliases and asking AA to voluntarily close Maria Borges' account due to a "security concern."
American asks the DOT to dismiss the complaint, which it'll likely do.
And for those who don't have time to read the full response, rest assured that AA included some hilarious language like comparing the scheme to a "game of whack-a-mole." It also posits that the likely reason Borges asked AA to close her account was that she "sens[ed] the jig was up."
Why filing a formal DOT complaint isn't the right move
Needless to say, if you're going to engage in questionable activities, then you shouldn't be filing a complaint with the DOT.
American Airlines is likely using its response as a way to discourage other participants from complaining to the Department. Additionally, by including detailed personal information, including the number of times the family called the reservations department, AA is clearly showing that it has a lot more information at its disposal should you submit a formal complaint.
Related: How and when to file a DOT complaint
When complaining to the DOT makes sense
Just because you shouldn't file a DOT complaint when you're engaging in sketchy behavior, doesn't mean the process is worthless.
In fact, filing a formal complaint to the DOT is one of the best courses of action when airlines don't give refunds for canceled flights. A formal complaint requires a response from the airline, which will clearly outline their case. The DOT will then prepare a written decision outlining its assessment.
Just don't file a complaint about missing miles when you've engaged in an elaborate scheme to get the sign-up bonus from 45 new credit cards.
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- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
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Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
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You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
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Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.