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Obama campaign collecting more donations from non-existent ZIP codes as campaign season goes on
Daily Caller ^ | October 21, 2012 | Matthew Boyle

Posted on 10/21/2012 2:34:05 PM PDT by Cincinatus' Wife

A soon to be released report from the conservative Government Accountability Institute shows that President Barack Obama’s re-election campaign has increasingly collected more electronic donations from non-existent ZIP codes throughout the 2012 campaign cycle.

From February through June this year the GAI findings reported that the Obama campaign collected $175,816.26 in electronic donations from non-existent ZIP codes. One month later, the campaign raised $411,369.55 through such donations and $197,464.59 in August.

By the end of September, the Obama campaign raked in $2,199,204.38 – thanks to donations from non-existent ZIP codes.

The upcoming GAI report suggests the Obama campaign is allowing fraudulent donations to be accepted because the president isn’t employing proper safeguards against fraudulent donations. GAI leaves open the possibility that the Obama campaign “may have experienced data-collection problems,” but argued “given the Obama campaign’s technological sophistication, the fact that the campaign consistently reports higher amounts of erroneous data month-to-month casts doubt on that explanation.”

“A robust anti-fraud address verification system (AVS) would require an accurate zip code to process a credit card transaction,” the report reads. “The presence of large sums of donations without such basic address information suggests that some campaigns are using looser security settings than others.”

GAI said an AVS system “compares the numerical portion of the address a donor enters to the numerical information on file with the credit card company for the card.”

“For example, most pay-at-the-pump gas stations require customers to enter their zip code,” GAI added. “Enter the wrong zip code or none at all, the transaction is denied.”

GAI said that when a political campaign uses such an AVS system, it’s “invisible to outsiders.”

“This makes it impossible to definitively know whether campaigns are using the AVS,” GAI wrote. “Complicating the issue is the fact that the AVS system has multiple settings that allow a campaign to loosen the system to accept more donations with suspect addresses or zip codes, or tighten it to block any donation that lacks a correctly entered address or zip code.”

Earlier this year – after reports surfaced alleging the campaign had disabled AVS and the Washington Examiner’s Michael Barone labeled such behavior, if true, “thuggish” – the Obama campaign claimed it does use proper donation security and fraud prevention tools.

“Credit card contributions to Obama for America are, in fact, processed using AVS (Address Verification System),” an Obama campaign spokesperson told the Election Law Blog in May 2012. “If a billing address is verified via AVS, then the credit card contribution is processed without delay. Some transactions caught by AVS may initially appear to a donor to have been accepted even though this is not the case. Obama for America employs a manual process to review any transaction flagged by AVS, also taking into account other fraud risk factors, and using fraud detection services provided by our credit card processor.”

“So any claims that Obama for America has disabled AVS are inaccurate; any question about this would have been answered–if the question had been asked,” the Obama spokesperson added.

While the GAI report doesn’t prove either way – whether the campaign uses AVS or doesn’t – it does call into question how “robust” of a system the Obama campaign is using. GAI’s most recent report released in early October proves the Obama campaign has illegally solicited foreign donors and actively chose to ignore donation fraud prevention safeguards like Card Verification Value data – the input of a three or four digit number on the back of a credit card. Paired together, the two reports paint a picture of a presidential campaign that’s targeting illegal donations to fill the holes of what may be its fundraising failures.

The Obama campaign just borrowed $15 million from Bank of America – despite its public claims of fundraising prowess. As the Daily Caller reported earlier today, the Obama campaign was also caught accepting donations from British citizen Chris Walker, while Mitt Romney’s campaign site rejected the same donor due to mismatched zip codes.

According to the New York Post, “It is illegal to knowingly solicit or accept money from foreign citizens. Walker said he used his actual street address in England but entered Arkansas as his state with the Schenectady, NY, ZIP code of 12345.”


TOPICS: Government; Politics
KEYWORDS: campaignfraud; campaignfunds; campaignmoney; contributions; obamabiden

1 posted on 10/21/2012 2:34:13 PM PDT by Cincinatus' Wife
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To: Cincinatus' Wife

Weren’t there a lot of non existent zip codes that got stimulus funds?


2 posted on 10/21/2012 2:36:02 PM PDT by cripplecreek (What does it profit a man if he gains the whole world but loses his soul?)
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To: cripplecreek
January 7, 2010: Obama stimulus funds tagged for fake zip codes $6.4 billion for 440 fictional districts, $375 million to locations that don't exist
3 posted on 10/21/2012 2:48:19 PM PDT by Cincinatus' Wife
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To: Cincinatus' Wife
I think the Justice Department should begin an investigation right away! Oh wait...

Well, at least the Speaker of the House can put pressure on the Executive Branch...oh.

But, we have the Supreme Court...? Oh, never mind!

4 posted on 10/21/2012 2:57:11 PM PDT by COBOL2Java (I'm not voting for Obama, so therefore I must be helping Romney!)
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To: Cincinatus' Wife

anyone thinking this is laundered money from companies that got gov grants ..ect..


5 posted on 10/21/2012 3:27:41 PM PDT by dalebert
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To: Cincinatus' Wife
There are ZIP Codes (we're talkin'bout 5-digit) that look to be unused. On the other hand there are organizations that actually have exclusive use of a 5-digit ZIP Code ~ and there are the APO-FPO Numbers.

Neither set of reserved numbers are popped up on the USPS ZIP Code address look up system. The reasons are many and varied, but sometimes the ZIP CODE has a confidential use ~ sort of like those mysterious phone numbers Hillary was calling back when Vince Foster showed up dead.

The APO-FPO numbers are even more elusive. You may have an address at a street with a number or barracks ID, and maybe even a town name, but that doesn't mean the APO-FPO designated element is actually there. Some of them are secret locations with all their mail rotating through some exchange office somewhere that nobody knows exists.

The 9-digit ZIP Codes are frequently assigned to company names at specific addresses, or federal agencies not at any particular address.

What is needed here is some understanding of what the writer means by ZIP Code. Does she mean 5-digit; is it part of the APO-FPO Series; could it be a number assigned to a company; or maybe they are talking about 9-digit ZIP Codes, and that could be just anything.

6 posted on 10/21/2012 3:36:32 PM PDT by muawiyah
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To: Cincinatus' Wife; governsleastgovernsbest; kristinn

Wow, I bet the FEC and the morning talk shows will be all over this....right?


7 posted on 10/21/2012 3:51:05 PM PDT by SoFloFreeper
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To: Cincinatus' Wife

I remember pondering the idea of claiming to represent one of the fictional districts and emanding my portion of the stimulus funds. That could have been a hoot, or it could have landed me in jail.


8 posted on 10/21/2012 4:09:18 PM PDT by Two Kids' Dad (((( America or 0bama. You can't choose both. ))))
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To: Cincinatus' Wife

President WJC legitimized the phase”The means justifies the end” and Pres. Obama is indeed maximizing it in any and all ways he can...the violation of the law be damed????


9 posted on 10/21/2012 4:44:53 PM PDT by zbogwan2
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To: Cincinatus' Wife

bump to the top


10 posted on 10/21/2012 6:03:29 PM PDT by GOPJ (Obama on Benghazi - - http://www.youtube.com/watch?v=nE-aorbApBw&feature=plcp)
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To: Cincinatus' Wife

Well, Obama needs to pay for his Hawaiian mansion.


11 posted on 10/21/2012 7:45:20 PM PDT by ilovesarah2012
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