It is not a scam, apparently (for the customers, at any rate). There is an article about it on bankrate which was linked to on another thread. People really do it and it really works. It looks to me, though, like it amounts to defrauding credit grantors. I mean, you are supposedly an authorized user, but you aren't able to charge on the card? So how are you an authorized user? You take money to put your information on someone's credit file that has nothing to do with them? So they can get loans more easily?