Thursday, October 30, 2008

How Obama's Credit Card Fraud Works..

You'll remember a piece I did a few days ago on Obama's Questionable Campaign Dollars , which examined how the Chosen One's campaign has gone to knowingly operate a system that is designed to evade campaign finance regulations on contribution limits, fake donors and illegal foreign contributions by deliberately disabling the built-in safeguards that match credit card numbers to names and addresses (known as the Address Verification System or AVS) that are part of the vendor set up that allow credit cards to be accepted as payment.

Ace received communications from professionals that gives us further detail on exactly how it was done..and more importantly, the implications:

Because many of our colleagues in the media have failed to investigate the shenanigans of the Obama Campaign, I have taken upon myself to uncover some improprieties. One that has troubled me greatly is Obama's very relaxed donation policies.

I have over 8 years experience working in the payment services industry. By taking a closer look at Obama's online donation site, I have noticed that his team has left the door wide open for credit card fraud by not putting inthe security measures to ensure full visa/mastercard authorization compliance. This is outright irresponsible behavior on the part of Obama's team and in direct violation of their agreement with Visa/Mastercard.

I did a test on his site. Acting as Joe Stalin, I went onto the Obama site and donated $5.00. I used false information, address: 100 Red Square,telephone number 323-666-1953, zip code 10001, Employer: Kremlin Occupation: Dictator. I did use my valid credit card numbers and
expiration date. The typical security measures, Address Verification System and the Card Validation Code are not present on the Obama site. So there is nothing in place to verify who I am. I clicked submit. The transaction went through.
Then I went to McCain's site, and entered in the same information. Joe Stalin. $5.00. As you can see, my donation was rejected for errors.

* What's the big deal? Obama has left the door open for anyone to run prepaid cards and foreign credit cards without proper screening. In addition, it is easy to run multi-transactions on the same card but under different aliases. In other words, an organization like Move could run tens of thousands of transactions for millions of dollars using essentially cards belonging to only handful of very large liberal donors like George Soros, Peter Lewis and Eric Schmidt.

In addition, Obama's site violates his agreement with Visa/Mastercard. Visa Mastercard regulations require each credit card acceptor to "obtain the 3 digit Card Validation Code [CVV2 found on the back of your credit card. 4 digits for American Express Cards] and submit this code with all authorization requests with respect to transactions where the card is not present..." [cite:] Visa/Master Program Guide.

(Please see attachment or go to Obama's site. You will notice that Obama's donation site does not have this code requirement, which is in direct violation of Visa/Mastercard regulations.)

Speculations as to why?

Many foreign credit cards do not have CVV2 codes. Requiring such codes would limit foreign donations.

Secondly, disabling the security allows would be credit card thieves to"ping" numbers till they get a hit. In other words, a crook could simply type in random numbers until he found one sequence that worked in some fashion. That could give a thief a starting point for committing credit-card fraud. If all they had to do was type nonsense values for names and addresses, such as Doodad Pro, they could quickly determine which numbers were valid - and they could probably program bots to do that kind of work.

No Address Verification System (AVS)

The Value of AVS from a credit card expert: I have over 30 years of experience in investigating Credit Card Fraud and I can tell you, which you may or may not know, that the merchant acquirer that is conducting the collection of credit / debit card for the Obama campaign are responsible for the actions to be taken regarding the Address Verification System responses.The value of the AVS system is that the issuer of the card being used provides back to the merchant
acquirer a response based upon the information provided during the authorization process. This response indicates to the merchant acquirer if the card information was validated as to ownership of the account. It is the merchant acquirer that determines what to do when the authorization response is received. In most cases the transaction that comes back with any negative meaning is denied. However, if the merchant acquirer has adjusted their system to accept any response as acceptable the transaction would be completed.

The value of the AVS system is to deny Card Not Present transactions (CNP)which are suspicious. This protects the merchant against charge backs for bad transactions. What is interesting to me is that the merchant acquirer has knowingly violated a basic CNP fraud prevention technique to accommodate a merchant (Obama Campaign). I think that both the Associations (VISA & MasterCard) would be highly interested in looking at the merchant acquirer that was processing these transactions. The value of ignoring the AVS responses is that multiple invalid transactions may be made without fear of being rejected by the authorization systems. This means that the real owner of the credit card account is willing to allow multiple transactions to be made on the account using different names and addresses that under normal conditions would be denied. The merchant acquirer has a complete listing of all transactions done and it would be very interesting to see how many transactions were conducted on the same account number using different names. I would think that this would be a Federal violation under the current campaign funding laws.

I hope you will take this inquiry seriously. I want a fair election. I do not want either side to STEAL the election literally. Obama's tactics have gone too far in my opinion. McCain is doing the honorable thing on his site and playing by the rules. Obama is in clear violation of the rules. Is this change we can believe in?

Needless to say, the dinosaur media want absolutely no part of this dth eprecedent it's set for future elections, aside from the criminal aspects, is highly toxic for our democracy.


B.Poster said...

With the general poor performance of Republicans in general, the poor performance of George W. Bush in particular, and the voters general disgust with all thing Republican right now Obama should have a thirty to forty point lead right now. Yet the polls indicate somewhere between a five to ten point lead for Obama right now.

A thirty point lead at this point would be all but insurmountable. Coming back from a ten point deficit has long odds at this point but it is doable.

When a campaign like the Obama campaign or any other is allowed to cheat the way the team Obama has with the likes of ACORN and this credit card scam, it becomes virtually impossible for the other side to remain competitive. Other than the occasional wimper team McCain is saying virtually nothing about all of this.

Given the poor performance of Republicans and President Bush along with the general disgust the voters have for all things Republican and the massive cheating going on by the Obama campaign, why doesn't team Obama have a lead of thirty to forty points right now? Why is team McCain virtually silent about the likes of ACORN and this credit card fraud scheme?

Why is Obama's lead not bigger? Three possibilities: 1.)Obama really has a thirty to forty point lead but the pollsters are reporting a closer race in order to keep the public interested. A close race means higher ratings for the networks and it means more opportunities for the talking head political pundits to get an audience. In other words, a close race means the networks and other news outlets will likely make more money. 2.)While the voters dispise Republicans, they just can't quite get comfortable with Obama. This could be due to what seems like a large number of questionable associates and the evasiveness of the campaign when the associates are mentioned may be leading the voting public to wonder if team Obama may be trying to hide something. Also, McCain has a history of going against the Republican establishment. This may be helping to limit the damage to team McCain somewhat. 3.) It is obvious the main stream news media is in the tank for team Obama. As such, the media may be reporting a tight race but in actuallity McCain has a huge lead. I think possibility number two is the most likely with possibilty number three being the least likely, however, I think any of the three possibilities are plausible.

Why is team McCain doing so little to protest the actions of groups like ACORN and this credit card fraud scheme? I've been forced to consider a very disturbing possibility. That is that John McCain really does not want to win. The reality is that team McCain seems to have run a very lousy campaign. This may be the greatest tradgedy of all.

In summary, the Republicans have generally performed poorly. In particular the performance of George W. Bush has been less than adequate. The voters are geneally disgusted with all things Republican. These factors alone should be enough for team Obama to have opened up a thiry to forty point lead by now. Cheating should be unneccessary. Team Obaam has committed massive voter fraud and with the exception of the brilliant pick of Sarah Palin for his Vice Presidential candidate team McCain has ran a lousy campaign. Its miraculous that team McCain is still within ten points. As stated earlier, a tem point lead at this point is not insurmountable. McCain can still pull this out but he will need to go on the attack rather than allowing Obama to attack without a counter attack.

knowitall said...

When the government is brought on investigation charges in the future, everyone will remember the ties of the fraud organizations and the elitist illuminati, and it will all come together.