The House Oversight Committee, led by Republican Chairman James Comer, sent a letter to the Treasury Department requesting access to Suspicious Activity Reports (SARs) related to the political action committee ActBlue. The committee is investigating potentially fraudulent donations made through the platform, including activities such as money laundering, counterfeit credit/debit card fraud, false statements, wire transfer fraud, and identity theft. Comer expressed concern that the failure to properly vet contributions could have allowed bad actors to exploit federal campaign finance laws.
The House Administration Committee has been investigating ActBlue following reports and lawsuits alleging that the platform accepted large contributions from donors who were unaware they were donating. In Virginia, there were cases where single donors made multiple donations totaling hundreds of thousands of dollars. The attorneys general of Missouri, Wyoming, and Texas have also been looking into the issue of “dummy” accounts. ActBlue recently changed its policy to require Card Verification Value (CVV) for online transactions with debit or credit cards to prevent potential fraud.
The lack of safeguards in ActBlue’s donation process may have allowed foreign nationals to contribute funds through gift cards or prepaid debit cards, which would violate federal law. Rep. Bryan Steil, chair of the House Administration Committee, petitioned the Federal Election Commission (FEC) to craft new rules to improve the verification process and ensure transparency and integrity in campaign donations. Whistleblowers brought attention to the issue of not using CVV numbers before the recent policy change by ActBlue.
During the 2021-2022 election cycle, ActBlue raised over $2.2 billion for Democratic candidates and causes, according to OpenSecrets.com. The Treasury Department has not yet responded to requests for comment on the investigation. The committee’s investigation into potentially fraudulent donations through ActBlue reflects concerns about the security and transparency of the campaign finance process. By accessing SARs and working with regulatory agencies like the FEC, lawmakers aim to address loopholes that may have allowed fraudulent activities to occur. The outcome of the investigation and any potential policy changes could impact how online fundraising platforms operate in the future.
