Loyalty program fraud is a serious situation for airways, and might are available many kinds. For essentially the most half, airways are good at detecting suspicious habits, and a overwhelming majority of the time, after they accuse somebody of one thing, they’re appropriate. That brings us to an fascinating grievance that has been filed in opposition to Virgin Atlantic.
Flying Membership member information DOT grievance in opposition to Virgin Atlantic
The Division of Transportation (DOT) publishes all types of filings, which I routinely maintain observe of. Normally, these are filings by airways, which give us a way of the routes they’re trying to launch, what new seats they could be trying to get licensed, and so on. Nevertheless, in some instances these filings additionally embody client complaints.
That brings us to a noteworthy grievance that was filed by a New Yorker named Chaim Zeev Rozen, in opposition to Virgin Atlantic. Based on the grievance, Virgin Atlantic accused him of “loyalty fraud,” when he did nothing greater than switch factors from his Chase Final Rewards account to Virgin Atlantic Flying Membership, to e-book journey for his household. Then the airline didn’t even notify him that his tickets had been canceled, leaving them stranded.
Listed here are the main points contained within the grievance:
- On December 3, 2023, Rozen opened a Virgin Atlantic Flying Membership account, and on October 26, 2024, he transfered factors from his Chase Final Rewards account; particularly, he transfered 65,000 factors, and because of a switch bonus, that bought him 91,000 factors
- On October 26, 2024, he made a reserving with factors via the Virgin Atlantic web site for his dad and mom and his brother (who share the identical final identify) to journey on October 28, 2024, on Delta from New York to Milan
- When the household tried to check-in, Delta knowledgeable them that Virgin Atlantic had canceled their tickets
- He was pressured to buy final minute tickets at a better value, which required transferring an extra 69,000 factors, and paying an extra $96.90; on high of that, the household couldn’t order particular meals (since there wasn’t 24 hours discover), which have been wanted to accommodate dietary restrictions primarily based on their faith
- He might not log into his Virgin Atlantic Flying Membership account, and Virgin Atlantic by no means contacted him concerning the tickets being canceled, or about his account being locked
- He tried to achieve out to Virgin Atlantic, however they refused to offer any particulars about what he did incorrect, aside from accusing him of misconduct, and claiming their determination was ultimate
- In an e mail on October 29, 2024, Virgin Atlantic merely said that “your account has been suspended following current investigations by our fraud safety group,” and that “we consider that your account has been used for fraudulent exercise and has due to this fact breached our Flying Membership Phrases and Situations”
Rozen factors out all the way in which that the airline might have tried to confirm if there was really fraud:
“Regardless of Virgin’s protestations, there are apparent strategies for Virgin Atlantic to analyze. In the event that they thought I used to be promoting factors, they may have requested me, and I’d have informed them no. In the event that they didn’t consider my easy attestation, they may have requested me to submit a sworn or notarized assertion. They may ask me to clarify my relationship with the passengers, or to show it, and I might simply have finished so. (My start certificates exhibits that I, the account-holder, am the offspring of two of the passengers. And my brother’s start certificates exhibits that he’s additionally their offspring.) They may study our reserving patterns, which might have proven that none of us has ever redeemed factors for any third celebration unknown to us, nor have we ever supplied factors to be used by any third celebration unknown to us. Nothing in Virgin Atlantic’s communications with me signifies that they did any investigation like this, nor that they investigated in every other applicable approach. They appear to have seen the inbound switch (from Chase) and redemption (on Delta) and instantly assumed the worst.
As Rozen summarizes the state of affairs:
“The totality of the state of affairs is Kafkaesque – an incorrect penalty meted out arbitrarily by a secret adversary that claims to be its personal decide, jury, and executioner, with no obvious concern for both equity or the DOT rules that rightly disallow these techniques”
I’m curious how Virgin Atlantic responds to this grievance
As I discussed earlier, airways do cope with a ton of loyalty program fraud, and in my expertise, they’re proper much more usually than they’re incorrect. There’s an enormous trade of factors brokers, who primarily purchase and promote factors (or tickets booked with factors), as a way to make a revenue.
Primarily based on the main points that Rozen offered, I can see how an itinerary like this is perhaps flagged basically — you had a member who by no means had any exercise, then transfered factors for imminent journey for folks aside from the member. The explanation these final minute bookings are suspicious is as a result of that’s how numerous fraud occurs, the place folks will steal factors as a way to e-book final minute journey, earlier than it’s caught.
However then really wanting on the particulars ought to’ve made it clear that this wasn’t fraud. Rozen was reserving tickets for relations who’ve the identical final identify he does. Nearly all ticket fraud can be for folks with totally different final names.
So I’m curious what’s happening right here. Is Rozen telling all the fact, or is he leaving out any necessary particulars? And if he’s telling the reality, what the heck is incorrect with Virgin Atlantic’s fraud division, that they suppose that is fraudulent exercise, even after being confronted by the member?
My greatest guess on the state of affairs (and that is purely hypothesis) is that since this was so final minute, the fraud division briefly suspended these tickets to analyze. However given the approaching journey, tickets weren’t reinstated in time, and to keep away from being held liable, the fraud division simply doubled down.
Airline loyalty program contracts of carriage are actually one-sided, which is to say that airways principally reserve the correct to cancel somebody’s account or take their factors away for any purpose. That being mentioned, canceling a confirmed ticket with no justifiable purpose absolutely violates some primary good religion contract guidelines.
Since this grievance was filed with the DOT, Virgin Atlantic may have the prospect to reply, and I look ahead studying what the airline has to say. We’ll be taught if the corporate was performing utterly unreasonably, or if there’s extra to the story.
Backside line
An individual has filed a grievance with the US Division of Transportation over an award ticket dispute. He transfered factors from Chase Final Rewards to Virgin Atlantic Flying Membership, to e-book final minute journey on Delta for his household.
The corporate’s fraud division accused him of misconduct, with out offering extra particulars on why. He ended up needing to e-book new tickets. Even after the very fact, the airline doubled down, with out really offering any proof for a way he violated the foundations.
Primarily based on the details offered, Virgin Atlantic was performing utterly out of line. That being mentioned, the fantastic thing about these DOT filings is that we get to see each side, so I’m curious how Virgin Atlantic responds.
What do you make of this grievance in opposition to Virgin Atlantic?
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