Qantas tightens enforcement on unauthorized buying and selling of frequent flyer points

Qantas has issued a clear warning to its members: illegal buying and selling of frequent flyer points won’t be tolerated. Amid growing concern over unauthorized redemptions and black market brokering, Australia’s flagship carrier is enforcing stricter monitoring, suspending accounts, and warning of lifetime bans for violators.

This isn’t just about airline policy. For many consumers, Qantas Points are a pseudo-currency—earned through daily spending, redeemed for premium travel experiences, and stored with the same expectation of value as any digital asset. So what happens when the airline draws a hard line? And how should everyday users think about points security, usage rules, and financial impact?

Let’s unpack what’s changed—and what it signals.

In May 2025, Qantas began publicly enforcing a long-standing but loosely policed policy: members are prohibited from buying, selling, or transferring points for cash or favors. The new approach includes using AI tools to detect suspicious activity, such as high-frequency point redemptions, mismatched passenger details, or connections to third-party travel agents operating in informal marketplaces.

The airline has already suspended hundreds of accounts, according to internal sources, and has warned that future violations could lead to permanent termination—meaning all accrued points would be forfeited, even if earned legally.

This move follows mounting evidence that points arbitrage—selling Qantas Points to strangers or via brokers—is not only widespread, but increasingly professionalized. Private groups on Telegram, forums, and even classified platforms have quietly facilitated these trades for years, often disguised as “travel planning services.”

For Qantas, the rise of a shadow economy presents more than reputational risk. It threatens the economics of its loyalty business, which is one of the airline’s most profitable divisions.

Everyday members who earn points through legitimate means—credit cards, flights, shopping portals—and redeem them for personal or family travel are not the target of this crackdown.

But those who have transferred large balances to unrelated individuals, or who have repeatedly booked flights for strangers using their points (sometimes for cash reimbursement), may now be flagged. Even well-meaning users who book on behalf of colleagues or friends could be caught in the net if activity patterns suggest commercial gain.

Notably, Qantas has clarified that booking for immediate family remains acceptable. The gray area lies in informal arrangements—like splitting point costs among friends or using your account to redeem tickets for someone you barely know. These are not explicitly allowed and now carry greater enforcement risk. The penalty? Accounts may be frozen without prior notice. Points may be canceled. And in serious cases, members could be permanently banned from the Qantas Frequent Flyer program.

At first glance, Qantas’ response may seem heavy-handed. But to understand the logic, one must view loyalty programs not as perks—but as billion-dollar financial assets.

In FY2023, Qantas Loyalty generated AU$471 million in earnings—nearly rivaling the airline’s core passenger business. The program boasts over 15 million members and includes partnerships with banks, supermarkets, fuel providers, and health insurers. Its value lies not just in flights redeemed, but in consumer behavior shaped by the points ecosystem.

For example, many co-branded credit cards pay Qantas for the right to issue points to their users. Each point has a financial cost, and when points are sold or traded on the black market, the underlying redemption no longer matches its intended pricing model. That distorts the economics of the system—and puts pressure on availability and value for legitimate users. Qantas’ move signals a broader principle: loyalty must remain tied to identity and intention. Turning points into a tradeable commodity undermines that logic and erodes program sustainability.

The points black market isn’t new, but it has grown more sophisticated. Brokers now offer full-service packages: you pay a fee, tell them your preferred flight route and dates, and they use their points—or someone else’s—to book the ticket. Sometimes, the broker uses a series of family accounts or corporate profiles to sidestep system checks.

The appeal is obvious: a business-class seat that costs AU$5,000 might be booked with points for just AU$1,500, after factoring in the broker’s fee. For consumers, it feels like a travel hack. For brokers, it’s a lucrative side hustle.

But the risks are growing. Qantas now cross-checks frequent flyer account usage, passenger names, and redemption patterns. A booking tied to a suspended account can be canceled—even at the airport. There’s no recourse for the traveler, and refunds are rare, especially if the booking wasn’t made through official channels. Beyond that, there are data security concerns. Providing your passport, preferences, and payment details to an unregulated broker is a privacy risk, especially in an era of increasing identity fraud.

Qantas’ approach is not unusual. Globally, airlines have begun tightening control over their loyalty ecosystems:

• Singapore Airlines (KrisFlyer) requires redemptions to be made only for pre-approved nominee family members. Violations can lead to account suspension.
• United Airlines (MileagePlus) explicitly bans third-party redemptions and has prosecuted offenders.
• British Airways (Avios) imposes limits on who you can book for and monitors patterns of “excessive gifting.”

What sets Qantas apart is its public stance. Rather than quietly deleting accounts, it is using media and member communications to raise awareness—and arguably, to scare off would-be traders. This marks a shift in tone: from passive enforcement to visible deterrence.

For many consumers, loyalty points feel like money. You can plan holidays with them, upgrade your seat, or book hotel stays. And yet, they are not protected like cash. Points are issued under contract, not law. Their value can change, rules can be updated, and balances can be wiped with little legal recourse. Unlike funds in a bank account, frequent flyer points are not covered by consumer deposit guarantees.

That’s why understanding your rights—and limitations—is essential. Treat points as a bonus, not a bank. Use them within the system, redeem them regularly, and avoid hoarding unless you have a near-term plan.

If your account is flagged and suspended, there may be no appeal. Qantas has stated that in cases of suspected abuse, it reserves the right to act “at its sole discretion.”

From a personal finance perspective, this crackdown is a reminder that rewards-based ecosystems are not risk-free. Whether it’s Qantas Points, credit card cashback, or supermarket loyalty tiers, the value is conditional—and fragile.

It also highlights a broader policy trend: programs that resemble financial instruments (like digital wallets or loyalty points) are being subject to stricter governance. Just as regulators now require transparency from Buy Now Pay Later providers, loyalty ecosystems may soon face scrutiny over fairness, accessibility, and fraud prevention.

Consumers should expect loyalty programs to behave more like financial institutions—with compliance rules, surveillance, and less tolerance for misuse. That may be inconvenient, but it also restores confidence in the long-term value of earned benefits.

If you’re a genuine user, there’s no reason to worry. Redeem your points for yourself or close family, and you’ll remain well within the rules. But the days of informal brokering, “friendly transfers,” and cash-back point swapping are coming to an end. Qantas is drawing a firm boundary: loyalty is earned, not bought. And in an age where digital rewards carry real-world value, enforcement is no longer optional. It’s policy in action.