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Old Jul 29, 2014, 10:15 am
FlyerTalk Forums Expert How-Tos and Guides
Last edit by: Prospero
This thread is dedicated to issues around American Airlines Corporate Security, AAdvantage Fraud division (AKA "Revenue Protection Unit"), and its enforcement of the AAdvantage Terms and Conditions - particularly to selling, buying and bartering awards, miles, upgrades and other instruments - and related issues.

It is okay at this time to gift awards, upgrades, etc. as long as there is absolutely no quid pro quo (no buying or selling or offer to do so, no barter or trade "you give me one now I'll give it back" or anything smacking of prohibited activity. AA is probably the strictest of the US airlines about this. They have a very active and expert AAdvantage Fraud division of the AA Corporate Fraud department, and they can both be aggressive and, some might say merciless - clawing back one's miles and instruments, even closing one's account and terminating status and ability to participate in the AAdvantage program n the future.

There are other ways to commit fraud in AA’s eyes, such as fictitious or fraudulent bookings to try to block seats to increase one’s chances if upgrades, generating tickets to access airside facilities (e.g. lounges) when there is no intent to fly, etc.

To read an example of how the US Department of Transportation has rules on punitive actions by AA, read Joel Hayes vs. American Airlines here (PDF).

Please read on for information and the consensus of knowledgeable members.

E.g. AAdvantage Terms and Conditions excerpt: "At no time may AAdvantage mileage credit or award tickets be purchased, sold, advertised for sale or bartered (including but not limited to transferring, gifting, or promising mileage credit or award tickets in exchange for support of a certain business, product or charity and/or participation in an auction, sweepstakes, raffle or contest). Any such mileage or tickets are void if transferred for cash or other consideration. Violators (including any passenger who uses a purchased or bartered award ticket) may be liable for damages and litigation costs, including American Airlines attorneys’ fees incurred in enforcing this rule." (This extends to other AA instruments such as Systemwide Upgrades, etc., selling of extra AirPass seats or baggage allowance, etc.)
Also see AAdvantage Program Terms and Conditions and

American Airlines Conditions of Carriage.

Originally Posted by SS255
<snip>"While you may consider the AAdvantage Miles in your account to be *your* property, they are actually the property of AA, and AA permits you to redeem them within the program rules set by AA. If AA detects any impropriety (real or perceived) in the use of AAdvantage miles, they reserve the right to confiscate the miles and/or close/delete the account."...
The typical email from AA Corporate Security can not be addressed by calling AAdvantage Customer Service or other methods - you must reply to the email address given. It likely will look like this:

My name is Fname Lname, and I am an analyst with American Airlines. One of my responsibilities is investigating possible instances of fraud, misrepresentation, and violations of the General AAdvantage Program Conditions. Today, I’m writing you about your AAdvantage account # XXXXXXXX

We have reason to believe that the transactions listed below violate one or more of the AAdvantage program conditions. This includes, but is not limited to, prohibition of purchase, sale, or barter of mileage credit and or award tickets. As a result, American Airlines has suspended your AAdvantage membership privileges and use of AA.com® in conjunction with your account – and may terminate your account as a result of our findings. We are in the process of completing the investigation into this matter, and I would like to hear the events as they occurred from your perspective. Please respond to this message by <date> with complete and accurate information regarding the activities listed below:

<specific activity /activities in question>

Required Information:·
  • Passenger name·
    • Origin and destination cities on the travel itinerary·
      • Purchaser name (individual, company and/or website), including:·
        • Copy of any advertisements to which you responded offering to purchase/broker the use of your AAdvantage miles·
          • Purchaser contact information, such as:·
            • Mailing address·
              • Email address·
                • Telephone number·
                  • Website profile name·
                    • Your statement fully disclosing the details surrounding the sale/barter transaction referenced above·
                      • Copy of all communication between yourself and the purchaser·
                        • Documentation that you received payment


To protect and retain the integrity of the AAdvantage program, it is vital that firm action be taken as a result of any violation of the AAdvantage Program Conditions, whether intentional or not. Failure to respond completely and accurately by <insert date>, will result in the termination of your AAdvantage membership and all its benefits, including all remaining AAdvantage miles in your account and any award tickets issued from it. Please, understand that our overall motivation is to preserve the benefits of the AAdvantage program, rather than to take punitive action against individuals. To that end, it’s not unusual for us to release the AAdvantage account suspension once we receive all the detail we request and reconcile it with the results of our investigation. We hope to hear from you soon.

Regards,

Fname Lname, etc.
Excellent summaries of information (based on the sum of experiences we have seen in this thread over time) of how to respond:

Blogger Gary Leff: "If you made that mistake and got caught, American usually will go light on first-time offenders provided that they ‘come clean’ and are forthcoming about whom a systemwide was sold to or purchased from and what the terms were. They are most interested in serial brokers and are willing to ‘plea bargain’ with minor offenders to get the Evip-lords. There may be a consequence but it should fall short of account shutdown and forfeiture of miles." Link
Originally Posted by sbrower
I am going to try and provide a summary of the advice. For the record, this is 90% from Jon (JonNYC) and a little bit from other comments and circumstances, I am just trying to provide an easy summary, without all the explanations and reasons. I am happy to have others update/correct.

1. Respond to the questions in the email which you received. Don't try to call or email that person, or anyone else, at AA or DOT or whatever. Just answer the email.

2. Answer every question, in detail, with the facts. Don't use sarcasm or "you should know" or anything else that sounds like to you are avoiding the exact question being asked.

3. Assume that they know more about the true facts than you do. It might not always be true, but in most cases they have way more information than you might assume. So go back to #2, above.

4. If you did ANYTHING that was wrong (not under your interpretation of what you think the rules should be, but based on what the rules actually say) then, if you want to continue to participate in the AAdvantage program, tell them about your error and tell them that you are prepared to pay a correct penalty for your mistake (miles/status/etc) and then go back to #2, above.
From JonNYC, our resident expert on this:

Originally Posted by JonNYC
Perfect and 100%.
<snip>

The analysts that do this for a living have the same reactions that any humans do to being lied to and/or condescended to. Therefore, as well as being 100% truthful, go out of your way NOT to be:

-condescending
-brusque
-sharp, terse and/or sounding like you're being inconvenienced
-insulting
-just generally slippery, aloof, evasive and unforthcoming. As mentioned; they know more than you think they do. Always.

DO be apologetic, contrite and extremely cooperative.

Finally, any version of "...in which case, I'll be emailing [insert name or department here] to tell them how I, a [insert years flying AA, status, MMer, $$ spent, etc] customer is being treated" and/or mention of your lawyer, DOT, Chris Elliot (), this forum, any blogger, etc. DO NOT DO THIS.
Older posts have been archived to the
archived thread.

A number of posts regarding AA's confiscation of 60,000 miles from "Mr. Hayes" for allegedly making "fictitious" bookings in search of whether his upgrade would be likely to progress or not, AA IT issues that might have led to this (or not), AA's replies and the USDOT complaint have been moved to a new thread: Hayes, USDOT and AA: "fictitious bookings" and checking upgrades.

NOTE: Posts about members experiencing account security breaches, fraud, theft of awards and instruments have moved to Account fraud / breach: my account compromised, awards stolen, etc..

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Account audit / blocked / fraud: award / miles / SWU / sale, barter, etc.

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Old May 8, 2018, 7:06 am
  #631  
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Originally Posted by uxb


Wrong! AAdvantage miles can be converted to/from Hilton pesos.
I don't think this is true any longer.
Which link points to that? I don't see it here
https://www.aa.com/i18n/aadvantage-p...deem-miles.jsp
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Old May 8, 2018, 7:21 am
  #632  
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Originally Posted by anabolism
Hi JDiver,

I'm having trouble parsing what you posted. Could you clarify?

  1. I do believe there are members (very possibly more than one)
  2. who are regular member
  3. given several members have been “busted” for violating AAdvantage T&Cs.
  4. I doubt many posts are in this forum, but they’d be sure to read this forum.
In (1), (2), and (3), by "members" do you mean of this thread, the AA forum, FT in general?
In (4), which forum? This thread, AA, FT?

My best guess at what you mean would be: Some members of this thread have access to CC and have been busted by AA for violating the T&C. AA security reads this thread. But that can't be right.
1) “members” = members of FlyerTalk (that’s the only membership offered here, though some have access to restricted fora). Members have been busted, and as we don’t allow trades, etc. in the fora other than TCC...

2) If I were doing this (“patrolling” FT to bust T&C violators), I’d post sufficiently in various fora, perhaps those of personal interest (perhaps some Europe subfora, Marriott, Sixt, Travel Products, etc.) to have TCC access - and rarely, if ever, post in the AA forum. Easily done.

But it’s all speculation, though based on reasonable suspicion. Reading this thread would be mandatory, I’d think (and TCC might be quite boring now that all posting of AA anything is banned - mission accomplished!)
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Old May 8, 2018, 8:28 am
  #633  
 
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Question. Upstream a number of people mentioned that AA's goal is to track down and go against the brokers and go easy on the little guys who are actually selling the miles in their personal account.

I am curious, how can they go against the brokers? Selling miles breaks no laws and is not a criminal act. It is a contract violation that allows AA the various financial remedies applied in case of contract violation (and the truth is that the T&C's pretty much make AA the owners of the miles with legal rights to arbitrarily do whatever they want with regards to miles and mileage accounts), but the brokers have no contractual relationship AA. What can AA possibly do to them?

Another point of note is that I (and everyone on the forum here) fly a lot. I have much use for status and the actual miles. AA could very effectively penalize me if I tried selling miles (I wouldn't and don't). Most of the people that sell miles obtain them from credit card churning and may never actually step foot on an airplane. It's win/don't lose proposition. Either they make money selling the miles or they don't, but they aren't losing status or potential trips that they could have used the miles for. I don't know what AA's strategy there is either (but if the credit card business is good enough that its worth the risk, so be it)

Last edited by travellerK; May 8, 2018 at 9:13 am
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Old May 8, 2018, 8:53 am
  #634  
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Originally Posted by travellerK
I am curious, how can they go against the brokers?
When tickets are voided and miles are confiscated, irate customers will go after the broker via chargebacks and lawsuits, doing AA's work for it and shutting down the broker's operation.

Last edited by nsx; May 8, 2018 at 9:03 am Reason: typo
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Old May 8, 2018, 9:02 am
  #635  
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Ha! If only

Originally Posted by nsx

When tickets are voided and miles are confiscated, irate customers will go after the broker via chargebacks and lawsuits, doing AA's work for it and shutting down the broker's operation.
Would be nice if it worked that way, but not even **close** to reality on that.
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Old May 8, 2018, 9:21 am
  #636  
 
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Originally Posted by nsx
When tickets are voided and miles are confiscated, irate customers will go after the broker via chargebacks and lawsuits, doing AA's work for it and shutting down the broker's operation.
Even if they locate the broker, unless they can find a legal way to subpoena his computer records, how are they going to know which tickets were for his customers?\

Part of what caused my curiosity is that I sometimes work in a public office. Not too far from me works one of those mileage brokers and he talks really loudly on the telephone.

Nothing ever goes into his name. He makes tickets for the flyer by directly accessing the accounts of the sellers and acting as them. So I don't see how confronting him, without subpoena or search warrant power would help anything.

Perhaps they could flag all account access coming from the same IP address as the broker, but many legitimate customers (including me) are using the same public office. If the IP address flag worked, perhaps they could just flag from many accounts being accessed from the same IP address, but I am guessing it doesn't work because of the existence of public offices and libraries that many different legitimate customers would use
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Old May 8, 2018, 10:53 am
  #637  
 
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Originally Posted by travellerK
I am curious, how can they go against the brokers? Selling miles breaks no laws and is not a criminal act. It is a contract violation that allows AA the various financial remedies applied in case of contract violation (and the truth is that the T&C's pretty much make AA the owners of the miles with legal rights to arbitrarily do whatever they want with regards to miles and mileage accounts), but the brokers have no contractual relationship AA. What can AA possibly do to them?
In other industries, there are plenty of cases of intermediaries being sued or prosecuted. "I didn't agree to the T&C of the program I'm scamming" generally doesn't fly, as far as I know.

Last edited by rjw242; May 8, 2018 at 10:59 am
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Old May 8, 2018, 11:34 am
  #638  
 
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Originally Posted by travellerK
Question. Upstream a number of people mentioned that AA's goal is to track down and go against the brokers and go easy on the little guys who are actually selling the miles in their personal account.

I am curious, how can they go against the brokers? Selling miles breaks no laws and is not a criminal act. It is a contract violation that allows AA the various financial remedies applied in case of contract violation (and the truth is that the T&C's pretty much make AA the owners of the miles with legal rights to arbitrarily do whatever they want with regards to miles and mileage accounts), but the brokers have no contractual relationship AA. What can AA possibly do to them?

Another point of note is that I (and everyone on the forum here) fly a lot. I have much use for status and the actual miles. AA could very effectively penalize me if I tried selling miles (I wouldn't and don't). Most of the people that sell miles obtain them from credit card churning and may never actually step foot on an airplane. It's win/don't lose proposition. Either they make money selling the miles or they don't, but they aren't losing status or potential trips that they could have used the miles for. I don't know what AA's strategy there is either (but if the credit card business is good enough that its worth the risk, so be it)
Actually, they can go after the brokers. See the excerpt below, which are the fourth (being most important) and fifth bullet point in the AAdvantage General T&C. The operative word is "Violators" which would include "Brokers".
  • At no time may AAdvantage mileage credit or award tickets be purchased, sold, advertised for sale or bartered (including but not limited to transferring, gifting, or promising mileage credit or award tickets in exchange for support of a certain business, product or charity and/or participation in an auction, sweepstakes, raffle or contest). Any such mileage or tickets are void if transferred for cash or other consideration. Violators (including any passenger who uses a purchased or bartered award ticket) may be liable for damages and litigation costs, including American Airlines attorneys’ fees incurred in enforcing this rule.
  • Use of award tickets that have been acquired by purchase or for any other consideration may result in the tickets being canceled, confiscated and/or the passenger being denied boarding. If a trip has been started, any continued travel will be at the passenger's expense on a full-fare basis. The passenger and member who attempts to use such a ticket may also be liable to American Airlines for the cost of a full fare ticket for any segments flown on a sold or bartered ticket.
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Old May 8, 2018, 11:49 am
  #639  
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Originally Posted by travellerK
Selling miles breaks no laws and is not a criminal act.
Just in the interest of accuracy, as I have pointed out many times since the days of the travel interest group on Genie (that goes back a little way) - It is a clear violation of a criminal statute in California. HOWEVER, I don't have reason to believe that anyone has ever actually been criminally prosecuted under that statute.

Regarding claims against brokers, it is a tort as "Interference with Contractual Relations" (the brokers know they are violating the terms of a contract between AA and the customer), and it is probably a violation of many other laws (Fraud - because they know they are selling something to their (the broker's) customers without the right to do so, Conversion, Money Had and Received, etc.)
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Old May 10, 2018, 10:34 am
  #640  
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How many brokers would have assets sufficient to cover the cost on a full fare basis of all those cheap business class award tickets they sell? Similarly, how easy would it be to make the passenger pay approximately ten thousand dollars?
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Old May 10, 2018, 11:07 am
  #641  
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Originally Posted by MSPeconomist
How many brokers would have assets sufficient to cover the cost on a full fare basis of all those cheap business class award tickets they sell? Similarly, how easy would it be to make the passenger pay approximately ten thousand dollars?
The nasty thing the airlines pull is to wait until you have started travel and then cancel your return. By then it's too late to find cheap flights home and you are pretty much stuck. If you're lucky there might be a MegaBus available! As for the brokers, mostly likely they will disappear and start up a new operation under a different ID as see how far they can get before having to shut down again. I hope they don't stop chasing these guys, but even if they only catch 10% of the culprits and prosecute 1% of those, maybe that will keep someone from trying it themselves. The actual hard cost of the travel is trivial, it's the lost revenue that motivates the chase.
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Old May 10, 2018, 11:58 am
  #642  
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Originally Posted by sbrower
Just in the interest of accuracy, as I have pointed out many times since the days of the travel interest group on Genie (that goes back a little way) - It is a clear violation of a criminal statute in California. HOWEVER, I don't have reason to believe that anyone has ever actually been criminally prosecuted under that statute.

Regarding claims against brokers, it is a tort as "Interference with Contractual Relations" (the brokers know they are violating the terms of a contract between AA and the customer), and it is probably a violation of many other laws (Fraud - because they know they are selling something to their (the broker's) customers without the right to do so, Conversion, Money Had and Received, etc.)
Et tu, sbrower? I moderated on GEnie and CompuServe travel fora... (I can’t even recollect the handles, nut iirc on CIS we were Assistant Sysops.)

But on topic, yep, there are statutes in at least one state, and there are other paths for AA to take. I’m sure AA would rather take down a broker, but I’m guessing that requires significant resource commitment. And for a lot less, it can impact numbers of individuals - so they’ll do that as well.
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Old May 10, 2018, 12:20 pm
  #643  
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Originally Posted by JDiver
Et tu, sbrower? I moderated on GEnie and CompuServe travel fora... (I can’t even recollect the handles, nut iirc on CIS we were Assistant Sysops.)

But on topic, yep, there are statutes in at least one state, and there are other paths for AA to take. I’m sure AA would rather take down a broker, but I’m guessing that requires significant resource commitment. And for a lot less, it can impact numbers of individuals - so they’ll do that as well.
Yes, some guy on Genie promised a first-class ticket to anyone who showed him that it was a criminal violation. So that made me take the time and find the statute. Then, like any good troll, he stopped posting and didn't send me my ticket.
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Old May 10, 2018, 5:00 pm
  #644  
 
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Originally Posted by FlyingEgghead
I think JDiver meant:

There are AA employees on FT who have access to CC, and this is how some people are busted. The AA employees also read the FT AA forum but don't post in it much (let alone post in this thread).
That makes a lot of sense, thanks for parsing it and filling in the missing bits.

Originally Posted by JDiver
1) “members” = members of FlyerTalk (that’s the only membership offered here, though some have access to restricted fora). Members have been busted, and as we don’t allow trades, etc. in the fora other than TCC...

2) If I were doing this (“patrolling” FT to bust T&C violators), I’d post sufficiently in various fora, perhaps those of personal interest (perhaps some Europe subfora, Marriott, Sixt, Travel Products, etc.) to have TCC access - and rarely, if ever, post in the AA forum. Easily done.

But it’s all speculation, though based on reasonable suspicion. Reading this thread would be mandatory, I’d think (and TCC might be quite boring now that all posting of AA anything is banned - mission accomplished!)
So #2 was your main point, along with the additional meaning interpreted by FlyingEgghead?
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Old May 10, 2018, 8:24 pm
  #645  
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Originally Posted by anabolism
That makes a lot of sense, thanks for parsing it and filling in the missing bits.

So #2 was your main point, along with the additional meaning interpreted by FlyingEgghead?
As FlyingEgghead prefaced his well made points with “I think JDiver meant”, I was verifying that was indeed what I meant.
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