The GOP-led House Administration Committee recently uncovered evidence that illegal donations from China, Russia, Iran, and Venezuela could have been laundered to Democratic campaigns through ActBlue, an online fundraising platform. ActBlue provides a service that directs donations to Democratic leaders, receiving a percentage as a fee.
Administration Committee Chairman Bryan Steil (R-WI) issued a letter to ActBlue CEO Regina Wallace-Jones in October demanding information from the organization on its donor verification process amid concerns about adversarial nations using straw donors to make campaign contributions. Steil explained that investigations have indicated this may have been done without the platform’s knowledge.
“Our investigation has indicated that these [foreign] actors may be exploiting existing U.S. [sic] donors by making straw donations without the individuals’ or your platform’s knowledge,” Steil said in his letter. “This failure to verify donor identity may have allowed foreign actors to fraudulently participate in the political process.”
The Wisconsin Republican added, “The Committee conducted a comprehensive data analysis, comparing over 200 million FEC donation records with data on age, party affiliation, number of donations, consumer purchasing power, and net worth. This study revealed several anomalies and mismatches in the FEC records, suggesting that foreign entities may be using these tactics to interfere with U.S. elections.”
As the 2024 Presidential election was fast approaching, Steil stressed the importance of quick compliance. “Given the critical importance of safeguarding the upcoming election, we strongly urge you to expedite the response to this inquiry. Immediate cooperation on this matter is essential to protect the integrity of our electoral system and to mitigate any risks posed by foreign actors attempting to interfere with the U.S. political process,” he said.
According to reports, ActBlue admitted that it did not require donors to provide a card verification code (CVV) with credit or debit cards when making online donations until relatively recently. Not requiring the CVV would have made it substantially easier to donate without providing one’s identity. However, ActBlue now mandates that donors provide this verification code.
A spokesperson on behalf of ActBlue indicated that they have received Steil’s request, maintaining they have a “zero tolerance” policy toward fraud. “ActBlue has received Chairman Steil’s inquiry and will respond to clarify inaccuracies and misrepresentations about our platform, which have increased in the lead-up to the election,” a statement read.
The spokesperson claimed extensive protocols are in place to prevent fraud. “We rigorously protect our donors’ security and enforce strict anti-fraud compliance policies. We have zero tolerance for fraud on our platform and are confident in our longstanding reputation as a trusted and reliable digital fundraising platform,” the message added.
ActBlue has been the subject of other controversy after South Carolina Attorney General Alan Wilson raised concerns around “highly suspicious” conduct on the platform. “It has come to my attention that these alleged activities may include ‘smurfing,’ a money laundering technique where large sums of money are ‘donated’ to a political candidate (or committee), and are broken down through smaller, less conspicuous amounts. Based on publicly accessible information, some individual donors in South Carolina have purportedly donated funds through ActBlue in prolific volumes that appear implausible and highly suspicious,” Attorney General Wilson said in a letter to the organization.
