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“I have never seen such flagrant disregard for online security as I have seen on Obama’s Website and ACTBLUE (DNC PAC)”

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By Michelle Malkin  •  November 3, 2008 09:51 AM

Over the past two weeks, I’ve noted the excellent work done by bloggers and investigative reporter Ken Timmerman on Barack Obama’s lax credit card/donation policies. The MSM grudgingly picked up on some of the Internet detective work, but it’s the tip of the iceberg.

Yesterday, I heard from an industry insider who says the problem goes beyond Obama — extending to nearly three dozen Democrat congressional candidates and a prominent left-wing fund-raising PAC site called ACTBLUE, which brags about raising $81,330,769 online since 2004.

My source writes:

I work for the credit card processing company that is culpable for allowing the DNC and the Obama Campaign to get away with rampant online donor fraud.

In a deliberate attempt to evade campaign financing laws, the Obama Campaign turned off certain security features on their online contribution page, which basically enables anyone in the world with a Visa/Mastercard to make donations in almost any amounts.

I have over 7 years experience in the payment services industry, and I have never seen such flagrant disregard for online security as I have seen on Obama’s Website and ACTBLUE (DNC PAC). In an age of identity theft and rampant online fraud, it is unconscionable for anyone to maintain an
ecommerce site without the basic security features. Yet, the majority of Democrats do. (McCain’s website and the Republican sites are in compliance with security regulations.)

I have followed the trail from the DNC to a PAC called ACTBLUE, which is responsible for the ecommerce portion of Democratic Party websites. ACTBLUE contracts the online fundraising portion to a company called, AUBURN QUAD. Auburn Quad has developed a software program, called Indigo, to make fund raising quick and easy. The secret sauce of Indigo appears to be the part of the program that turns off the Address Verification and CVV2 security features, which allows for untraceable, unlimited online donations.

There is no plausible explanation for these security violations other than wanting to skirt around campaign finance rules. I would vigorously argue that a large portion of Obama’s $579 million in individual contributions is in violation of campaign finance laws. Many donations may have been made by non US citizens, made in excess of the $2,300 individual limit, and made on
stolen credit card numbers.

This fraudulent donation scandal goes deeper than just the presidential election. 33 Democratic Candidates running for Senate have sites that are out of compliance. And a large number of Democratic House seats as well.

There needs to be an investigation into these online donations. The People need to know where the money is coming from. Elections should be won on ideas and not bought off by illicit campaign funds.

Glenn Reynolds writes today in the NYPost: “WHETHER or not Barack Obama wins election tomorrow, his campaign has exposed some gaping weaknesses in the electoral process – and some even more serious problems with today’s mass media. The question is whether the political establishment will be willing to do anything about them.”

More from National Journal’s Neil Munro and Obama Shrugged.

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