Tag Archives: Credit Card Transactions

2 Comments

Finance fraud:

It turns out that half of Obama’s haul in 2008 has come in contributions of $200 dollars or less. These small donations do not require public disclosure under FEC guidelines, and the Obama campaign refuses to make public its list of contributors.

It turns out that half of Obama’s haul in 2008 has come in contributions of $200 dollars or less. These small donations do not require public disclosure under FEC guidelines, and the Obama campaign refuses to make public its list of contributors.

~~~~~

From PowerLine

I've read recent reports of the Obama campaign receiving donations from dubious names and foreign locales and it got me wondering: How is this possible?

I run a small Internet business and when I process credit cards I'm required to make sure the name on the card exactly matches the name of the customer making the purchase. Also, the purchaser's address must match that of the cardholders. If these don't match, then the payment isn't approved. Period. So how is it possible that the Obama campaign could receive donations from fictional people and places? Well, I decided to do a little experiment. I went to the Obama campaign website and entered the following:

Name: John Galt
Address: 1957 Ayn Rand Lane
City: Galts Gulch
State: CO
Zip: 99999

Then I checked the box next to $15 and entered my actual credit card number and expiration date (it didn't ask for the 3-didgit code on the back of the card) and it took me to the next page and... "Your donation has been processed. Thank you for your generous gift."

This simply should not, and could not, happen in any business or any campaign that is honestly trying to vet it's donors. Also, I don't see how this could possibly happen without the collusion of the credit card companies. They simply wouldn't allow any business to process, potentially, hundreds of millions in credit card transactions where the name on the card doesn't match the purchasers name.

In short, with the system set up as it is by the Obama camp, an individual could donate unlimited amounts of money by simply making up fake names and addresses. And Obama is doing his best to facilitate this fraud. This is truly scandalous.

Our reader was not yet done. He tried the experiment on the McCain site: "I tried the exact same thing at the McCain site and it didn't allow the transaction." He then repeated the experiment at the Obama site:

I went back to the Obama site and made three additional donations using the names Osama Bin Laden, Saddam Hussein and Bill Ayers, all with different addresses. All the transactions went through using the same credit card. I saved screenshots of the transactions.

~~~~~

From the NextRight

I just contributed $5 to Barack Obama.

I didn't want to. Ideally, I could have contributed $0.01 and cost them money. But it was the only way to confirm the root cause of the fraudulent micro-donations to the Obama campaign ("Doodad Pro" for $17,300 and "Good Will" for $11,000).

The Obama campaign has turned its security settings for accepting online contributions down to the bare minimum -- possibly to juice the numbers, and turning a blind eye towards the potential for fraud not just against the FEC, but against unsuspecting victims of credit card 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.

~~~~

DISCLAIMER:  I'VE SEEN A NUMBER OF THESE "EXPERIMENTS" SO I'M HESITANT TO SAY THAT THEY'RE ALL AUTHENTIC.  AT THE SAME TIME I HAVE NO DESIRE TO DONATE TO OBAMA'S CAMPAIGN TO PROVE THEM RIGHT.