A Chicago based travel agency boss was charged with multiple counts of wire fraud after amassing a massive 42 million Delta SkyBonus points in the space of just over one year.
Gennady Podolsky of Vega International Travel Services booked flights for clients which were all linked to a SkyBonus account he had set up enabling him to ‘fraudulently accrue’ the points.
Skybonus is an SME corporate loyalty account which companies use to redeemed free flights and other rewards and is not restricted to a single traveler.
The 42 million Delta SkyBonus points Podolsky raked in were valued at more than $1.75 million, according to prosecutors.
"Podolsky used his knowledge of the travel industry to take advantage of his travel agency clients," US attorney Byung Pak said in a statement.
"Through his access, he allegedly took advantage of Delta Airlines’ corporate frequent flyer program, illegally reaping millions of SkyBonus points."
He was charged with 12 counts of wire fraud, although his attorney maintains it is a victimless crime.
None of his clients were defrauded – they were just unaware that their bookings were used to earn points, and Delta actually ‘netted millions of dollars of profits’ from business with Podolsky’s agency, said attorney Seth D. Kirschenbaum.
Delta says the FBI is still investigating.
"We’re happy to see any kind of fraud indicted and continue to work with the F.B.I. and the U.S. Attorney’s Office to make sure this case is prosecuted to its fullest extent," the airline said.
Podolsky was a managing partner and the lead travel agent at Vega International.
Airline and hotel loyalty programs have long been seen as an easy target for scammers or ‘friendly fraud’ by travel trade partners as security protocols and checks are much weaker compared to conventional transactions using credit or debit cards.
