Update: Heres something a reader sent me, for what its worth: I recently set up credit card processing for my startup company and the way it works is the vender (ie me, or Obamas campaign) selects wh
Update: Here’s something a reader sent me, for what it’s worth:
I recently set up credit card processing for my startup company and the way it works is the vender (ie me, or Obama’s campaign) selects whether the info must match what is on the card. If they opt not to they accept the risk of being flagged after too many fradulent charges are reported by them to the credit card companies. Since these people are (presumably) using their actual credit card and just giving a different name to avoid the donation limits I doubt they’ll file complaints about the charges with their card company.
So the only time you would ever do this is if you know your clients really well. The only reason I can think of for Obama’s campaign to do this is to avoid the donations cap. The fact that this isn’t all over the media is truly a shame.
Update: Unbelievable. Suddenly, after multiple blog readers had their phony donations accepted and this story started percolating on right-wing blogs, the security system is magically back in place.
Update: I don’t know what happened to the guy in the last update but Flip says he successfully donated five bucks at 2:05 p.m. with the following info:
Name: Nodda Realperson
Address: 1000 This Is a Bogus Street
City/State: Neighborhood of Makebelieve, CA
Email: if.a.live.person.is.vetting.this.donation@its.fake.dont.process.it.com
Employer: Barack Obama
Occupation: Cow-Eyed Disciple
A friend e-mails to ask if anyone’s tried this with a foreign credit card to see if there’s any difference. Anyone got one?
Update: Commenter says his foreign credit card worked like a charm:
I have a credit card issued by a bank in Hong Kong.
I’ve just made 5 donations of $5 each using the card. I listed fake addresses in North Korea, Iran, Gaza, Venezuela and Kenya. The names and addresses were made up, each was different, I listed real Yahoo email addresses that forward to me.
Fake Name
Not A. Realperson
Finance Violation
Fraudulent Charge
Over Donation Limit
All 5 went through without a problem. I’m already being solicited for more money.
Update: One of Jonah Goldberg’s readers says he tried this at McCain’s website and was rejected.
Update: Patrick Ruffini was Bush’s web guy in 2004 and specializes in online campaign finance, so he knows what he’s talking about here. Verdict: Fraud.
The issue centers around the Address Verification Service (or AVS) that credit card processors use to sniff out phony transactions. I was able to contribute money using an address other than the one on file with my bank account (I used an address I control, just not the one on my account), showing that the Obama campaign deliberately disabled AVS for its online donors…
The end result? “Donors” like “Doodad Pro” can submit tons of donations totaling well above the $2,300 limit using different bogus addresses (this does clarify how donations from “Palestine”, or PA, got through). And the campaign has no way to reliably de-dupe these donations, besides looking at the last four digits of the credit card number, which with 3.1 million donors is an identifier that could be shared by literally hundreds of donors, and is not as easy to eyeball like a common name or address would be. The ability to contribute with a false address, when the technology to prevent it not only exists but comes standard, is a green light for fraud.
Tags: Ayn Rand, Barack Obama, Hillary Clinton
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