Question about Microsoft Live Cashback

I've just now started using this and already have a few hundred in cash back and it's a really sweet deal but what is to stop two people from really manipulating the system? One person could list something for $700 on ebay and then get a friend to buy it. The friend gets $200 cash back and the seller only incurs the paypal fees. They do this on 6 different items and then at the end of 60 days they split the $1200 cashback minus fees. I'm sure I'm not the first to think of this.
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Comments
<< <i>the person does have to follow thru and actually complete payment thru paypal within 7 days. but ebay/msn would have no proof the item itself never exchanged hands. I am sure people are working this to make money with having a buying and selling partner/friend. >>
yeah, I'm saying that friend B would give friend A his money back right after he pays with paypal and the item could be anything because its just for show anyway.