7 steps in this "frequent flyer miles" scam

You need the help of many Sacagaweas

Here's what to do:
  1. Get yourself a credit card that offers frequent flyer miles as a bonus when you purchase things.
  2. Go to the web site for the U.S. Mint.
  3. Buy $1,000 worth of Sacagawea (or other design) dollar coins using your credit card. (The Mint is trying to promote the use of these coins, so your shipping is free.)
  4. When you get the coins, deposit them in your bank.
  5. Use the $1,000 in your bank to pay off your credit card.
  6. In ten days, repeat.
  7. Yes, it's completely legal.
You can take advantage of the U. S. Mint's desire to get millions of these coins into circulation. (Since the coins last longer than paper money, the government's lifetime cost of a dollar is cheaper with a coin than a bill.)

You're also taking advantage of liberal frequent flyer rewards programs.

But I'm sorry to report that you missed your opportunity for a big time score. Some customers - called "travel hackers" because they look for any opportunity to lower their travel costs - had been buying hundreds of thousands of dollars worth of these coins to rack up frequent flyer miles, but the Mint realized that those customers weren't helping to get the coins into circulation, so it restricted buyers to $1,000 in purchases every ten days.

And then the mint modified the program even more:
The United States Mint has eliminated the credit and debit card purchase of $1 Coins through its Direct Ship Program effective July 22, 2011. Customers who wish to purchase $1 coins through the Direct Ship Program can still do so by wire transfer, check, or money order.
- Buy coins from the U. S. Mint>>
- Fly for Free Thanks to the U.S. Mint, Yahoo Finance, Forbes>>

1 comment:

  1. Lol
    it's interesting that people will do that in order to save money on travel but then, it's totally legitimate so why not.

    I am sure that these individuals use cash on occasion so what they should do is withdraw money in coins. Or, the banks should start issuing more coins to people who come in to make withdrawals. It's not like you don't need coins every now and again- for example at soda machines.


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