Secret Service Must Investigate Obama Credit Card Fraud

By JB Williams jb.uspu@gmail.com

The Obama campaign is reporting that it raised a record $181 million in the month of September alone. According to campaign FEC filings for September, the money came from 1.8 million individual donors, many overseas, and over 500,000 of whom had never donated before. Did YOU donate to Obama? You might have, just follow the trail… The same thing happened in September of 2008. We later learned that most of that huge cash infusion came from foreign countries, in small denominations, just like September 2012, averaging $53 each from millions of undisclosed donors, most of them abroad. There are Federal Laws making it “illegal” to accept “foreign campaign contributions,” yet Obama just took in almost $200 million, most of it from overseas donors. The FEC must immediately investigate the source of these overseas funds. The neat part is who those “first time donors” are… it is YOU. And it is YOU who must demand that the FEC and Secret Service immediately investigate the massive overseas funds pouring into the Obama campaign. The Government Accountability Institute just issued a 109 page report detailing the massive campaign finance fraud taking place in the 2012 campaign.

From the report –
“Campaigns are not required to disclose donations from individuals who gave less than $200 in a campaign cycle unless the campaign is audited. Furthermore, campaigns do not even need to keep records of those who gave less than $50. Presidential candidates are raising large amounts of money that fall under the $200 threshold and audits are rare unless a campaign accepts federal matching funds. To this date (September 26, 2012), the Romney campaign has raised $58,456,968 and the Obama campaign has raised $271,327,755 in contributions under $200 for the 2012 campaign cycle. In the 2008 presidential elections, the Obama campaign raised $335,139,233 in donations under $200.”

A glimpse at campaign finance security –
Given the state-of-the art digital sophistication of the President’s re-election campaign—including social media, micro-targeting and data-mining—its online donation system contains at least three major security vulnerabilities: 1. The absence of the industry-standard CVV and unknown use of AVS anti-fraud security for online credit card donations 2. The presence of a branded, major third party-owned website (Obama.com) redirects its 68% foreign traffic to a campaign donation page 3. Active foreign solicitation using indiscriminate email solicitations and exposure to social media

Specifically: Obama Campaign Lacks the Industry-Standard Level Of Credit Card Security For Donations, But Uses It For Merchandise Purchases: To purchase Obama campaign merchandise, the campaign requires buyers to enter their credit card CVV security code, but does not require the credit card security code to be entered when making an online campaign donation (see page 61). By GAI’s estimates, the Obama campaign’s failure to utilize industry-standard protections potentially costs the campaign millions in extra processing fees. (with purpose)

The BIG Picture is Massive Fraud
There are reasons why the Obama campaign would use CVV code security technology for merchandising. In short, the CVV code on the back of your credit or debit card is there to ensure that the individual using the card is you, or someone authorized by you to use the card. Most Credit Card fraud does not happen with a stolen card, but rather a stolen card number. Because the fraudster does not actually possess the card, but only the card number and expiration date for the card, they will not have the CVV code on the back of the card in most cases. When the campaign is selling and shipping merchandise, they use CVV code technology to secure each transaction before shipping merchandise. But when nothing is being shipped, as in the case of campaign donations, they have CVV code technology turned off. Why? Because, the transactions coming from overseas on stolen card numbers, will not have the CVV code. They also won’t have AVS information, which the Obama campaign also turned off on its donations account. They are stolen card numbers, most of them from Americans. Address Verification, (AVS) like CVV code verification, are industry standards for blocking fraudulent online transactions. Why has the Obama campaign turned off both of those security functions for donations, but not for merchandise orders? With these security functions turned on, the system would DECLINE transactions as “fraudulent” if they were missing a matching CVV code. So, to allow “fraudulent” donations on stolen card numbers, they would have to turn off the CVV security function, thereby allowing the “fraudulent” transactions to APPROVE without any CVV code match.

This raises three obvious questions?
1. Who are these individual donors? (Including via bundlers?) 2. Why are we allowing foreign donations from overseas? 3. How many of those donations are made on stolen U.S. card numbers? Only a full scale investigation into the massive donations from September 2012 (and 2008) can answer these and other questions. However, what we already know is this…      Obama is not supposed to accept any foreign campaign donations, but he is. The Obama campaign is familiar with and using CVV code technology on merchandise, but not on campaign donations. Without the CVV code, fraudulent donations can be made with stolen card numbers and they are. The CVV code technology was intentionally turned off for Obama donations only. The Secret Service is responsible for investigating and prosecuting Credit Card Fraud.

The Secret Service must immediately investigate the huge sums pouring into the Obama campaign from overseas donors, looking closely at the campaigns misuse of CVV code technology to open the flood gates for fraudulent transactions. The Obama Campaign used these same tactics in 2008, for more than $200 million in foreign unsecure donations from undisclosed donors. Because they are committing fraud in small denominations, $25-$50 each, most American cardholders won’t even notice the charge on their statement. Even if they do notice on their next billing statement and issue a chargeback, it won’t be until after the election is over. Meanwhile, Obama can take in hundreds of millions in foreign fraudulent transactions billed to stolen U.S. card numbers and use those funds to win re-election. By the time people figure out they donated to Obama when their statement arrives, the election will be over. To raise this issue with Secret Service, contact your closest Field Office. Contact the FEC here and demand an immediate investigation into Obama’s foreign campaign contributions. Whether or not the average reader can grasps the gravity of this fraud or not, I can assure you that the Secret Service and F.B.I. fully understand. They know exactly why someone would turn off these standard security features. They know that it represents an intentional opening of the flood gates for fraudulent online donations. What the people need to know is what these Law Enforcement groups are going to do about it and if they are going to do it, before another election is stolen by fraud? Are they loyal to America? – Or, to the Commander-in-thief?

Additional information was released at Breitbart In an explosive report set to send shockwaves through official Washington, the Government Accountability Institute (GAI) released a 108-page GAI investigation into the threat of foreign and fraudulent Internet campaign donations in U.S. federal elections (visit campaignfundingrisks.com to download the full report). Breitbart News obtained an advance copy of the bombshell report which reveals that the Obama.com website is not owned by the president’s campaign but rather by Obama bundler Robert Roche, a U.S. citizen living in Shanghai, China. Roche is the chairman of a Chinese infomercial company, Acorn International, with ties to state-controlled banks that allow it to “gain revenue through credit card transactions with Chinese banks.” There’s more.

The unusual Obama.com website redirects traffic directly to a donation page on the Obama campaign’s official website, my.barackobama.com, which does not require donors to enter their credit card security code (known as the CVV code), thereby increasing the likelihood of foreign or fraudulent donations. The website is managed by a small web development firm, Wicked Global, in Maine. One of Wicked Global’s employees, Greg Dorr, lists on his LinkedIn page his additional employment with Peace Action Maine and Maine Voices for Palestinian Rights. According to the GAI report, 68 percent of all Internet traffic to Obama.com comes from foreign visitors. And still more. In 2011, Mr. Roche obtained one of the most sought-after pieces of real estate in Washington, DC: a seat at the head table for President Obama’s State Dinner for Chinese President Hu Jintao. How Roche—a man whose infomercial company hawks fitness equipment, cell phones, and breast enhancement products—landed a seat alongside Secretary of State Hillary Clinton, former President Bill Clinton, Sen. John Kerry, former President Jimmy Carter, and Chinese President Hu Jintao remains unclear. Since 2009, White House Visitor Logs list the name Robert Roche at least 19 times, despite the fact Mr. Roche’s primary residence is in China. Mr. Roche, who is originally from Chicago, is a co-chair of the Technology Initiative for the Obama campaign. According to Acorn International’s prospectus, the success of Mr. Roche’s company hinges on maintaining access to state-run media and “preferential tax treatments and subsidies” doled out by the People’s Republic of China (PRC): Our business depends on our access to TV media time to market our products and services in China….PRC law is vague and is subject to discretionary interpretation and enforcement by PRC authorities…Loss of these preferential tax treatments and subsidies could have material and adverse effects on our results of operations and financial conditions. In addition to the Obama.com redirect revelation, the Government Accountability Institute report— America the Vulnerable: Are Foreign And Fraudulent Online Contributions Influencing U.S. Elections?—exposes myriad gaping online security holes that stand to threaten the integrity of House, Senate, and presidential elections. Stay tuned to Breitbart News for continuing coverage…

The Secret Service and FEC MUST Act Immediately Secret Service Criminal Investigations The United States Secret Service is responsible for maintaining the integrity of the nation's financial infrastructure and payment systems. As a part of this mission, the Secret Service constantly implements

and evaluates prevention and response measures to guard against electronic crimes as well as other computer related fraud. The Secret Service derives its authority to investigate specified criminal violations from Title 18 of the United States Code, Section 3056. Criminal investigations can be international in scope. These investigations include: counterfeiting of U.S. currency (to include coins); counterfeiting of foreign currency (occurring domestically); identity crimes such as access device fraud, identity theft, false identification fraud, bank fraud and check fraud; telemarketing fraud; telecommunications fraud (cellular and hard wire); computer fraud; fraud targeting automated payment systems and teller machines; direct deposit fraud; investigations of forgery, uttering, alterations, false impersonations or false claims involving U.S. Treasury Checks, U.S. Saving Bonds, U.S. Treasury Notes, Bonds and Bills; electronic funds transfer (EFT) including Treasury disbursements and fraud within the Treasury payment systems; Federal Deposit Insurance Corporation investigations; Farm Credit Administration violations; and fictitious or fraudulent commercial instruments and foreign securities. Criminal Investigations The United States Secret Service is responsible for maintaining the integrity of the nation's financial infrastructure and payment systems. As a part of this mission, the Secret Service constantly implements and evaluates prevention and response measures to guard against electronic crimes as well as other computer related fraud. The Secret Service derives its authority to investigate specified criminal violations from Title 18 of the United States Code, Section 3056. Criminal investigations can be international in scope. These investigations include: counterfeiting of U.S. currency (to include coins); counterfeiting of foreign currency (occurring domestically); identity crimes such as access device fraud, identity theft, false identification fraud, bank fraud and check fraud; telemarketing fraud; telecommunications fraud (cellular and hard wire); computer fraud; fraud targeting automated payment systems and teller machines; direct deposit fraud; investigations of forgery, uttering, alterations, false impersonations or false claims involving U.S. Treasury Checks, U.S. Saving Bonds, U.S. Treasury Notes, Bonds and Bills; electronic funds transfer (EFT) including Treasury disbursements and fraud within the Treasury payment systems; Federal Deposit Insurance Corporation investigations; Farm Credit Administration violations; and fictitious or fraudulent commercial instruments and foreign securities. Financial Crimes The Secret Service exercises broad investigative jurisdiction over a variety of financial crimes. As the original guardian of the nation's financial payment systems, the Secret Service has a long history of protecting American consumers and industries from financial fraud. In addition to its original mandate of combating the counterfeiting of U.S. currency, the passage of federal laws in 1982 and 1984 gave the Secret Service primary authority for the investigation of access device fraud, including credit and debit card fraud, and parallel authority with other federal law enforcement agencies in identity crime cases. The Secret Service also was given primary authority for the investigation of fraud as it relates to computers. In the early 1990s, the Secret Service's investigative mission expanded to include concurrent jurisdiction with the United States Department of Justice regarding Financial Institution Fraud. Also during this time,

the Internet and use of personal computers became commonplace and expanded worldwide. The combination of the information revolution and the effects of globalization caused the investigative mission of the Secret Service to expand dramatically. As a result, the Secret Service has evolved into an agency that is recognized worldwide for its investigative expertise and for its aggressive and innovative approach to the detection, investigation and prevention of financial crimes. On October 26, 2001, President Bush signed into law H.R. 3162, the USA PATRIOT Act. The U.S. Secret Service was mandated by this legislation to establish a nationwide network of Electronic Crimes Task Forces (ECTFs). The concept of the ECTF network is to bring together not only federal, state and local law enforcement, but also prosecutors, private industry and academia. The common purpose is the prevention, detection, mitigation and aggressive investigation of attacks on the nation's financial and critical infrastructures. The following are primary offenses investigated by the Secret Service: Identity Crimes - Identity crimes are defined as the misuse of personal or financial identifiers in order to gain something of value and/or facilitate other criminal activity. The Secret Service is the primary federal agency tasked with investigating identity theft/fraud and its related activities under Title 18, United States Code, Section 1028. Identity crimes are some of the fastest growing and most serious economic crimes in the United States for both financial institutions and persons whose identifying information has been illegally used. The Secret Service records criminal complaints, assists victims in contacting other relevant investigative and consumer protection agencies and works with other federal, state and local law enforcement and reporting agencies to identify perpetrators. Identity crimes investigated by the Secret Service include, but are not limited to, the following: Credit Card/Access Device Fraud (Skimming) Check Fraud Bank Fraud False Identification Fraud Passport/Visa Fraud Identity Theft Counterfeit and Fraudulent Identification - The Secret Service enforces laws involving counterfeit and fraudulent identification which means, where someone knowingly and without lawful authority produces, transfers or possesses a false identification document to defraud the U.S. Government. The use of desktop publishing software/hardware to counterfeit and produce different forms of identification used to obtain funds illegally remains one of the Secret Service's core violations.

Access Device Fraud - Financial industry sources estimate annual losses associated with credit card fraud to be in the billions of dollars. The Secret Service is the primary federal agency tasked with

investigating access device fraud and its related activities under Title 18, United States Code, Section 1029. Although it is commonly called the credit card statute, this law also applies to other crimes involving access devices including debit cards, automated teller machine (ATM) cards, computer passwords, personal identification numbers, credit card or debit card account numbers, long-distance access codes, and the Subscriber Identity Module (SIM) contained within cellular telephones that assign billing. Computer Fraud - Title 18 of the United States Code, Section 1030, authorizes the Secret Service to investigate computer crimes. Violations enforced under this statute include unauthorized access to protected computers, theft of data such as personal identification used to commit identity theft, denial of service attacks used for extortion or disruption of e-commerce and malware (malicious software) distribution to include viruses intended for financial gain. The proliferation of the Internet has allowed the transition of traditional street crimes to flourish in the anonymity of cyberspace. The borders of a state or a country are no longer boundaries for cyber criminals to reach their victims. As a result of advancements in technology, the Secret Service established the Electronic Crimes Special Agent Program (ECSAP) and a network of Electronic Crimes Task Forces throughout the United States. Agents assigned to ECSAP are computer investigative specialists, qualified to conduct examinations on many types of electronic evidence, including computers, personal data assistants, telecommunications devices, electronic organizers and other electronic media. ECSAP is the only program of its kind in the country with the level of expertise and culture of partnership-building with stakeholders across the spectrum of critical infrastructure. The Secret Service's Electronic Crimes Task Force and Electronic Crimes Working Group Initiatives seek to prioritize investigative cases that involve some form of electronic crime. These initiatives provide needed support and resources with field investigations that have any one of the following criteria: Significant economic or community impact Participation of organized criminal groups involving multiple districts or transnational organizations Use of schemes involving new technology The task force/working group model brings together state and local law enforcement, prosecutors, private sector interests and academia in an effort to prevent cyber-crime and identity theft. Forgery - Hundreds of millions of government checks and bonds are issued by the United States each year. This large number attracts criminals who specialize in stealing and forging checks or bonds from mail boxes in apartment complexes and private homes. During a fraudulent transaction, a check or bond thief usually forges the payee's signature and presents false identification. Money Laundering - The Money Laundering Control Act makes it a crime to launder proceeds of certain criminal offenses, called "specified unlawful activities," which are defined in Title 18, United States Code, Sections 1956 & 1957; as well as Title 18, United States Code, Section 1961 (Racketeer Influenced and Corrupt Organizations Act). The Secret Service monitors money laundering activities

through other financial crimes such as financial institution fraud, access device fraud, food stamp fraud and counterfeiting of U.S. currency. Electronic Benefits Transfer Fraud - Congress enacted the Food Stamp Act of 1977 to provide nutritional food to low-income families. It further directed the Secret Service to aggressively pursue fraud in the food stamp program. The possession or use of food stamp coupons, "Authorization to Participate" cards or Electronic Benefit Transfer cards by unauthorized persons compromises the integrity of the Food Stamp Program and is a criminal violation of the Food Stamp Act. Please visit http://www.fns.usda.gov/fsp for further information regarding the Food Stamp Program and the Electronic Benefits Transfer cards. Asset Forfeiture - The seizing and forfeiture of assets is a byproduct of the Secret Service's criminal investigations. As a result, the Secret Service, through its asset forfeiture program, provides assistance to investigative offices by supplying direction, expertise and temporary support personnel, as needed, in criminal investigations seizure and during the seizure and the forfeiture of assets. Advance Fee Fraud- The perpetrators of advance fee fraud, known internationally as "4-1-9 fraud" (after the section of the Nigerian penal code which addresses these schemes), are often very creative and innovative. A large number of victims are enticed into believing they have been singled out from the masses to share in multi-million dollar windfall profits for no apparent reason. If you have received an e-mail or fax from someone you do not know requesting your assistance in a financial transaction, such as the transfer of a large sum of money into an account, or claiming you are the next of kin to an wealthy person who has died, or the winner of some obscure lottery, DO NOT respond. These requests are typically sent through public servers via a generic "spammed" e-mail message. Usually, the sender does not yet know your personal e-mail address and is depending on you to respond. Once you reply, whether you intend to string them along or tell them you are not interested, they will often continue to e-mail you in an attempt to harass or intimidate you. If you receive an unsolicited e-mail of this nature, the best course is to simply delete the message. Due to a number of aggravating circumstances -- the use of false names, addresses, stolen/cloned/prepaid cell phones and remote e-mail addresses -- verifying the location of and subsequent prosecution of these persons or groups is difficult. The act of sending an e-mail soliciting your assistance in a financial transaction is not a crime in itself. The installation of a credible spam filter and contacting your Internet Service Provider may help deter these unsolicited e-mails. However, there is currently no available program to completely block these types of messages. If you have suffered a significant financial loss related to advance fee fraud, please contact your local Secret Service field office. Telephone numbers are available in the Field Office Directory on this website or may also be found on the inside cover of your local telephone directory. Any investigation regarding this type of fraud will be conducted on a case by case basis at the discretion of the local Secret Service office and U.S. Attorney's Office. _____________________________________________________________________________________

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