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This man effectively created a free money machine and used it to make over three hundred thousand dollars completely legally and completely tax free. Konstantine Anikeev signed up for an American Express which offered a cash back offer on purchases made in certain grocery stores. He used this credit card to buy pre-paid visa cards which he would then use to buy money orders which he would deposit back into his bank account to pay off the credit card he used to make the purchase in the first place. The trick was that the fees from the pre-paid cards and the money orders ended up totalling around 4% of the transaction value, 1% less than he made in cash back rewards from his Amex, allowing him to profit off the difference, this quickly added up as he churned through over 30 million dollars in gift cards. The best part is that credit card rewards are not considered income in the eyes of the IRS so Konstantines profits were all tax free! Unfortunately, if you ar
