Change Change Change

The Washington Post runs a little bit further with the story of Obama’s campaign website lacking security features to prevent credit card and campaign finance fraud.

Sen. Barack Obama‘s presidential campaign is allowing donors to use largely untraceable prepaid credit cards that could potentially be used to evade limits on how much an individual is legally allowed to give or to mask a contributor’s identity, campaign officials confirmed.

Faced with a huge influx of donations over the Internet, the campaign has also chosen not to use basic security measures to prevent potentially illegal or anonymous contributions from flowing into its accounts, aides acknowledged. Instead, the campaign is scrutinizing its books for improper donations after the money has been deposited.

The Obama organization said its extensive review has ensured that the campaign has refunded any improper contributions, and noted that Federal Election Commission rules do not require front-end screening of donations.

In recent weeks, questionable contributions have created headaches for Obama’s accounting team as it has tried to explain why campaign finance filings have included itemized donations from individuals using fake names, such as Es Esh or Doodad Pro. Those revelations prompted conservative bloggers to further test Obama’s finance vetting by giving money using the kind of prepaid cards that can be bought at a drugstore and cannot be traced to a donor.

The problem with such cards, campaign finance lawyers said, is that they make it impossible to tell whether foreign nationals, donors who have exceeded the limits, government contractors or others who are barred from giving to a federal campaign are making contributions.

“They have opened the floodgates to all this money coming in,” said Sean Cairncross, chief counsel to the Republican National Committee. “I think they’ve made the determination that whatever money they have to refund on the back end doesn’t outweigh the benefit of taking all this money upfront.”

The Obama campaign has shattered presidential fundraising records, in part by capitalizing on the ease of online giving. Of the $150 million the senator from Illinois raised in September, nearly $100 million came in over the Internet.

This story isn’t the most exhaustive and seems to mitigate some of the most questionable aspects of this fundraising operation.  Ace has a lot more in-depth information.  But it is a start.

And the potential for fraud under Obama’s set-up is huge.  Take a look at the case of Mary T. Biskup:

Mary T. Biskup, a retired insurance manager from Manchester, Mo…turned up on Obama’s FEC reports as having donated $174,800 to the campaign. Contributors are limited to giving $2,300 for the general election.

Biskup, who had scores of Obama contributions attributed to her, said in an interview that she never donated to the candidate. “That’s an error,” she said. Moreover, she added, her credit card was never billed for the donations, meaning someone appropriated her name and made the contributions with another card.

$174,000!  And that’s just one name.  Did a single donor with multiple credit cards use her name (in order to avoid legal limits), or was there a coordinated effort by a group of contributors to donate as Ms. Biskup?  Ed at Hot Air has some more info on the tactics of credit card fraud.

Drudge is bringing some of the issues of this into further relief by posting, along with this story, a video of CNN reminding us all that Obama broke his pledge to accept public financing, which would have put limits on his fundraising apparatus.

A willingness to break public pledges, a reputation for secrecy—yeah, this is the kind of man I want to give a blank check to (though maybe someone pretending to be me has already given him one in my name)!

Strengthen oversight. Remember Congress.


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