I too don't know where they get enough FF miles to do this. Possibilities: 1. The also scrape off all miles earned from the tickets they sell to Europe and Asia which are real tickets that come from contracts with the airlines. Then use those miles along with those gained from flights to Asia to buy award flights to Asia. 2. I have read about buying miles from the dark web that are hacked and stolen from individual FF accounts. 3. From people selling their miles from their own FF accounts.
How they get FF miles from award tickets is beyond me. But the agreement specifically says "You acknowledge and explicitly permit an agent to create a frequent flyer account on your behalf using your name and personal information to assist in booking award tickets. You also understand and agree that the frequent flyer account will be managed by the agent and account details may change. These tickets are not eligible for mileage accrual." Maybe they create an account for the traveler and deposit the needed number of miles into that account and then book the award in the traveler's name. If so the risk is lower that it might be.
I believe the cell contact being active is critical to the success of their business model. They need to bail out travelers that run into trouble or they would have lots of negative reviews and BBB complaints, which they don't have. So my take is the company is not scamming the wise traveler that reads and understands the agreement. They are scamming the airline FF programs. However, just as some people bought into the housing bubble in 2007-2008 getting loans they didn't understand or could not afford, there will always be some folks who do not read or understand the agreement and don't know they risk of flying on sold or bartered award tickets.