@Jamesgreen:
Actually, the RAF system works this way:
1. The referrer account send invite to an email address.
2. With the link in the received email, you create a fresh trial WoW account - doesnt matter if done in existing or new battle.net account.
3. Upgrade the trial account to WoW Battle Chest (including currently Vanilla+TBC+WOTLK, levels up to 80)
4. Setup a subscription - here the Free month of gametime is coming, and your CC is NOT charged before the the free month deplete.
5. When you pay for a month of subscription - via 1 month gametime code (off Blizzard Store) or your first month subscription is charged, your Referrer receive the FREE month of gameplay.
6. When you pay for second month of subscription (or do it at once on step 5 with 2months Game card code), your refferer is egligible for one ingame mount Obsidian Nightwing.
TLDR:
For the free month to activate on the Referrer account, you have to pay in any form with a month of subscription on the recruited account, nothing around that!
Here is where the fraud RAF comes:
They create trial account, upgrade, and pay a month of sub, so you receive the free RAF month, or pay 2 months, so you receive the ingame mount.
Few hours later, they cashback the money, used for the wow upgrade and the subscriptions, but the free month and the ingame month was not removed off the Referrer account, at least till now.