A considerable amount of this fraudulent activity originates from China. An unusually high number of MileagePlus Gold members are now based in China, where hotels reportedly assist Hyatt members in fabricating stays, status, and transferable benefits.

Marriott's partnership with Fliggy, Alibaba’s online booking platform similar to Trip.com, has made it particularly easy for individuals to obtain Marriott Platinum status. Fliggy offers a 120-day Marriott Platinum status challenge that provides temporary status; members can retain this status by staying eight nights within the timeframe. Initially exclusive to Fliggy “F4” top-tier members, changes in April expanded eligibility to include F4, F5, and F6 members without adjusting the requirements accordingly.

This expansion has enabled individuals to artificially boost their Fliggy membership levels through fake transactions at no actual cost. Fliggy operates like eBay, where merchants need high ratings and sales for better visibility. This necessity has spurred a gray market for fake transactions.

Participants in this gray market sell high-level Fliggy accounts after inflating them through fraudulent transactions, profiting from both ends. Given that Fliggy accounts are integrated into Alibaba’s ecosystem covering about 70% of China's population, nearly anyone in China can purchase a Marriott Platinum Card for as little as $10 to $20.

This situation undermines the value of genuine loyalty as people can access club lounges and other benefits without earning them legitimately. Consequently, Bonvoy elites have little incentive to requalify for their status since they can simply buy it cheaply and merge new accounts with existing ones.

Reports indicate that up to 75% of guests checking into Marriott hotels in China hold Platinum status. While this figure may represent an upper limit, it highlights the ease with which such statuses are obtained under current conditions.