How to Protect Your Airline Miles

Travel expert Katy Nastro shares her experience of having her American Airlines miles stolen, providing insights into why maintaining your travel rewards isn’t always beneficial.

If you’re like many people, you’ve probably spent considerable time collecting airline miles, all while daydreaming about future travel adventures. Whether it’s a trip to Europe in business class or that getaway you’ve been postponing, it’s always exciting to see your points accumulate. But imagine checking your account one day only to find that someone has used those miles without your consent.

This scenario happened to Katy Nastro, a travel expert connected with a flight-tracking app called Flighty. In a discussion on “The CyberGuy Report” podcast, she revealed that over 50,000 of her American Airlines miles disappeared when someone redeemed them for a flight in a different person’s name. This was an eye-opener—not just for Katy, but for anyone with frequent flyer accounts.

What struck me was that Katy, knowledgeable about the travel industry, still found herself facing a frightening issue that could potentially happen to anyone. Her experience serves as a reminder, especially with the busy holiday travel period approaching.

How Katy Discovered 50,000 Stolen Airline Miles

After landing in New York, Katy checked her American Airlines app during her Uber ride to see the miles she had accrued from her latest trip. Instead of a pleasant surprise, she was met with a concerning drop in her balance. Initially, she thought it was a glitch—it seemed implausible that almost 50,000 miles were missing. But after refreshing the app, the status remained unchanged. That’s when she knew she had to contact American Airlines.

The airline broke the news that her miles had been used for a ticket under someone else’s name. Katy had been saving those points for a trip to Asia, and now they were associated with a flight she knew nothing about.

“It felt like a gut punch,” she admitted, reflecting on how she lost years of hard-earned rewards. Katy had earned those miles traveling far and wide, including lengthy flights to Australia. Yet, it turned out someone else was reaping the benefits of her travels.

She confessed, “I never thought this could happen to me, especially since I work in the industry.” It’s ironic; even those well-versed in travel mishaps can fall prey to them.

The Complicated Process of Recovering Stolen Airline Miles

You might think that recovering lost miles would be straightforward, especially since the ticket was booked in a different name. However, Katy found that reclaiming her miles was a complicated process. American Airlines instructed her to file a formal fraud complaint via email. Additionally, she had to report the theft to the police and gather necessary documentation before her miles could be reinstated.

“Having to file a police report to get my miles back was a surprise,” Katy explained.

Eventually, she was able to retrieve her miles but still had hurdles to clear. She was also required to create a new email address and set up a replacement AAdvantage account. Fortunately, the airline was able to transfer her existing status along with her recovered miles. However, the extra step of involving law enforcement, especially for an online issue, did raise some eyebrows.

Moreover, it’s not just about the hassle. Loyalty points don’t have the same safeguards as actual money. American Airlines’ AAdvantage terms state that the airline has no obligation to restore miles that were removed without permission. Although requests made within three months post-theft are reviewed, reimbursements are at the airline’s discretion, highlighting the importance of noticing suspicious activity quickly.

Thieves and Airline Miles

I asked Katy a question lingered in my mind. Who was using her miles? Unfortunately, she couldn’t answer that. The airline informed her the miles were redeemed under a different name, but Katy had no clarity on who the person was or their destination. It’s quite suspicious that loyalty programs often let members book tickets for others and may even allow for point transfers, making it easier for unauthorized users to exploit such features.

“I think I might have fallen into the trap of using the same password across multiple accounts,” she noted, hinting at a common pitfall. It’s easy to slip into such habits. If a hacker gets hold of a password from one site, they could potentially access others too. And although loyalty balances can appear as simple numbers, those numbers can finance some substantial flights.

The Cost of Holding Onto Airline Miles

Katy also offered a surprising piece of advice for those who hoard miles. She suggested not waiting indefinitely to use them.

“You shouldn’t hold onto those miles forever,” she cautioned.

This is due to a significant issue: depreciation. Airlines can modify their award pricing, meaning that what used to cost 50,000 miles could eventually demand much more. There’s a certain similarity to buying a new car and watching its value plummet after driving it off the lot. Katy pointed out how often people linger too long waiting for that ideal first-class ticket when they should consider redeeming miles within, say, a year of earning them.

That said, it’s still wise to evaluate the real value of an award flight. Paying 80,000 miles for a low-cost economy ticket may not be wise. However, if you’re traveling during peak holiday seasons, redeeming miles for an economy seat might be more practical.

Be Cautious of Scams

During our talk, I shared with Katy how I’ve recently noticed an uptick in emails that seem to be legitimate airline notifications, warning about unusual mile redemptions. These messages can be pretty convincing—so much so that I’ve nearly clicked on them. It’s a clever tactic, as many airlines do send out real notifications when miles are redeemed, making it easier for scammers to exploit that familiarity.

Katy also highlighted that fraudsters might create fake airline support accounts on social media. People inquiring about flight delays or miles might unknowingly reach out to impersonators posing as official representatives. Her warning was loud and clear: avoid giving personal information during conversations on social media. If you see a questionable redemption notice, check your account activity directly through the airline’s official app instead of clicking links in suspicious messages.

Steps to Safeguard Your Airline Miles

Before you embark on your next journey, it’s a good idea to secure the loyalty accounts you’ve dedicated time to building. A few preventative measures can help you catch unauthorized activity sooner and strengthen your account security.

1. Regularly Check Your Rewards Balances

It’s wise to review your loyalty apps at least once a month. Comparing recent transactions and your expected balance can alert you to any discrepancies. Katy admitted she sometimes went months without checking, which only complicated tracking unauthorized redemptions. Setting calendar reminders may help catch abnormalities quicker. Enabling alerts for account activity can also assist in notifying you of suspicious transactions.

2. Unique Passwords for Each Account

Avoid using the same password across multiple websites for your airline accounts. Consider using a password manager to help create and securely store strong, unique passwords. Also, ensure that your email connected to these accounts is well-protected; access to that inbox can lead to unauthorized password resets.

3. Activate Extra Account Security

Look for two-factor authentication or other login verification methods offered by your airline or hotel program. These protections vary, so it’s a good idea to review your account settings and address any unfamiliar changes to your contact information.

4. Be Wary of Unexpected Alerts

If you receive a text or email claiming an unauthorized redemption, don’t click on any links. Instead, manually navigate to the airline’s official app or website. Just because a message looks legitimate doesn’t mean it is.

Using reliable antivirus software can help detect malicious links, block harmful websites, and provide some defense against malware that attempts to steal passwords. While it may not stop every phishing scam, it offers additional security if you accidentally click on something questionable.

5. Report Missing Miles Right Away

If you notice unauthorized activity, reach out to your loyalty program’s verified customer service as soon as possible. Ask them to secure your account and examine the transaction. Keep records of statements and correspondence, following any guidance they provide, including filing a police report if required. It’s important not to delay; some programs have deadlines for fraud claims.

6. Use a Separate Email for Travel Accounts

Katy recommended using a dedicated email for loyalty programs, which can simplify tracking notifications and reduce exposure if an unrelated service is breached. Alternatively, consider email aliases to keep your primary address private while managing your travel accounts.

7. Utilize a Personal Data Removal Service

Your personal information might already be exposed on various data broker websites, making it easier for scammers to target you. Using a data removal service can help eliminate your personal details from those sites. While it won’t stop all threats, it can reduce your online visibility, complicating efforts by fraudsters to tailor their scams to you.

8. Keep Boarding Passes and Loyalty Numbers Private

Be mindful of sharing images of boarding passes, tags, or travel confirmations online as they can contain sensitive information. Such documents can be exploited by criminals to access bookings or impersonate you. It’s best to avoid posting these items on social media and to securely discard printed materials after use.

9. Set Up AI Alerts for Airline Changes

Consider using an AI assistant to monitor your airline loyalty programs for changes that might affect your points’ value. You can program alerts to inform you about shifts in redemption rates or program rules. Remember, airlines don’t always announce devaluations ahead of time, making it useful to be as informed as possible.

Kurt’s Observations

Thinking back to Katy checking her mileage while in the car, only to find that 50,000 miles were gone, is troubling. I’ve collected my share of miles as well over the years, and losing them like that would be infuriating. The fact that someone could exploit even an industry expert like Katy adds another layer of concern—it’s crucial we treat loyalty accounts with care and attention similar to our financial accounts.

While it’s great to save up for that dream getaway, Katy’s insights suggest we should also relish those rewards before they lose value.

If you’re interested in more about Katy’s experience and how it could change your perspective on your miles, listen to The CyberGuy Report podcast. And if you’re looking for ways to stretch your travel rewards further, there’s a free webinar coming up about smarter travel strategies. Don’t miss out on practical tips!

Do you think airlines should be required to refund stolen miles? Share your thoughts with us!