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.”