Man Becomes a Millionaire, By paying off his credit card debts
Konstantin began earning money through his credit card as a hobby in 2009, and it quickly evolved into a “profession” for him. He was able to make millions as a result of it. The physicist purchased a big quantity of gift cards with his card. He’d then cash them, but the funds in his bank account, and pay off his credit card payment. The credit card company rewarded him for his payment.
US Physicist Konstantin Anikeev Earnings by Credit Card:
His earnings came from the rewards he received for paying his card bills. To make additional money, he repeated the process several times. Konstantin, for example, received a $25 reward for purchasing a $500 gift card. He had to pay a fee of $6 to cash the gift card, leaving him with a profit of $19. By repeating the method throughout the years, the scientist was able to make $300,000 (Rs 2.17 crore).
@Ravisutanjani tell me your earning from CCs?
Meet, Konstantin Anikeev (credit card industry ka gunda) 😂 #hacker https://t.co/EqEDrPjFTf
— CA Ashish Madnawat (@themadnawat) June 2, 2021
The case came to light when someone noticed Konstantin’s income rise exponentially and reported it to the US Tax department. An investigation was carried out and the case was referred to the court. Konstantin arrived with a tub full of gift cards and defended himself by saying that the rewards were not his income but discounts and cashback given to him by the card companies. After the court heard both the parties, the judge ruled that the credit card rewards were like property and not taxable, however, if the gift card and rewards are converted back into cash, it becomes profit and shall be taxed. The authorities are now working to collect taxes from Konstantin.
