Xandrios

The fraud that they are trying to prevent is miles being stolen and sold for profit. There is a whole mini-economy revolving around selling and buying credit card points (including those sourced from hacked accounts), and those points subsequently being used to buy award tickets for 3rd party clients that pay (almost) retail prices. These transactions are in fact fraud and are typically marked by having a new (unused) account having a sudden influx of miles from credit-card programs. That's why airlines are so strict when this kind of activity is seen.

Lets be clear; you transferring your own miles into FB and using those to buy an award tickets is perfectly within the rules and allowed. But it may require a 'check' to verify that the above scenario is not happening. That's what we are talking about here. If your account or transaction were to be flagged you can still resolve that by following their instructions. Granted, its a hassle and they make you go through hoops - but it should be possible.

I believe that what carnarvon may also be referring to is a related topic. Many frequent fliers feel that it is unfair that 'outsiders with credit card points' come in to 'steal' their availability, especially when we are talking about hard to find/redeem award seats. Think business class or LaPremiere on popular routes. That's not against the rules, its just something that the people traveling on AFKL often don't like as they feel that 'their' availability is being used up by outsiders who don't take part in the programme otherwise.