As always, Flyertalkers are smarter than Citi. Citi will regret taking such an ill-conceived position. It cannot be fraud to buy a gift card with a Citi credit card. This happens thousands of times a day. What Citi apparently didn't like was folks buying lots of gift cards and earning special category bonus points for them. I can understand that position -- as I presume Citi loses money on these transactions -- but that isn't fraud. It's just Citi being stupid in the way they set up the promotion. It is certainly unfair -- and perhaps illegal -- for Citi to punish its customers for doing what the bank incentivized them to do. The insanity of this is that Citi is even willing to shut down the accounts of people who bought only two gift cards. That's nuts.

And they're still offering the card to new customers, with no warnings.