FlyerTalk Forums - View Single Post - Brazilian man arrested for fraudulent MS activities

Aug 5, 2014 | 7:25 am

#21

lad2

Join Date: Sep 2007

Location: Chicago

Programs: AA, BA, CX, DL, EK, F9, GA, HA, IB, JL, KE, LH, MH, NH, OS, PG, QR, RJ, SA, TG, UA, VN, WN, ZH

Posts: 927

Quote:

Originally Posted by vxmike

I wonder how hard it would be for a few friends to start a bunch of fake companies and sign up with credit card processors as grocery stores, gas stations and office supply stores then just pay invoices via CC back and forth equaling out a break-even year taxwise for everyone. Heck maybe even just use the companies to liquidate GCs back and forth and do the first step at real stores.

Wouldn't really be that difficult. Sounds like this story has actual fraud involved (fake CCs) but talks of paying invoices wouldn't be hard to simulate.

A simple United 1.5x card churning huge numbers at 1.7% processing costs would definitely be profitable if one had proper outlets for the miles. Now imagine a big percentage of that being bonus spend. Or pretend you use the United 1.5x to buy Amex GC at 3% cashback plus two referral levels first....it gets big fast.

... in theory.

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