Democratic fundraising giant ActBlue loosened fraud prevention measures during the 2024 election cycle, leading to millions in questionable donations including foreign contributions, according to congressional investigations.
At a Glance
- ActBlue changed its fraud policy twice during the 2024 campaign, allowing more lenient standards
- The platform did not require card verification values (CVVs) until January 2024 and accepted all prepaid gift cards
- Up to 6.4% of donations that should have been rejected for fraud were missed
- At least 237 donations were made from foreign IP addresses using prepaid US debit or gift cards
- ActBlue funneled nearly $2 billion in the 2024 election cycle to Democratic candidates
Relaxed Fraud Prevention Leads to Foreign Donations
Congressional investigations have revealed that ActBlue, the Democratic party’s primary fundraising platform, significantly loosened its fraud prevention standards multiple times during the crucial 2024 election cycle. Internal documents show the platform changed its fraud policy twice, creating conditions that allowed more questionable donations to flow through its system. These relaxed guidelines had immediate consequences, with fraud detection rates plummeting and allowing contributions that normally would have been flagged to proceed unhindered.
By December 2024, the situation had escalated dramatically with fraudulent donations identified from numerous foreign countries including Brazil, Colombia, India, Iraq, the Philippines, and Saudi Arabia. Employee reviews uncovered contributions originating from foreign IP addresses, many with incomplete donor information. These revelations have triggered state-level investigations and a racketeering lawsuit alleging identity theft for fraudulent contributions that may have influenced the election’s outcome.
Systemic Security Failures Revealed
The platform’s security protocols contained significant gaps that appear designed to maximize donation volume rather than ensure legal compliance. Most notably, ActBlue did not require card verification values (CVVs) for transactions until January 2024 and accepted all prepaid gift cards without additional verification. This created an environment where anonymous donations could easily circumvent typical banking safeguards, raising serious questions about the origin of funds flowing to Democratic campaigns.
Between September 2022 and November 2024, ActBlue documented approximately 1,900 fraudulent transactions, though congressional investigators believe this represents only a fraction of the actual problem. An interim report from the House Oversight and Administration Committees criticized ActBlue harshly for what appears to be deliberate indifference to fraud prevention, suggesting the organization’s practices might violate the Federal Election Campaign Act of 1971, which strictly regulates campaign finance.
Massive Financial Impact on 2024 Elections
The scale of ActBlue’s influence on American elections is difficult to overstate. Since its founding in 2004, the platform has channeled over $16 billion to Democratic candidates and causes. During the 2024 election cycle alone, ActBlue funneled nearly $2 billion to Democratic candidates, including $46.7 million specifically to Kamala Harris’s campaign. These figures highlight why any fraud or foreign influence within the system represents a significant threat to election integrity.
The Treasury Department has flagged numerous Suspicious Activity Reports related to ActBlue transactions, adding another layer of scrutiny to the organization’s practices. Congressional lawmakers have demanded extensive documentation from ActBlue’s CEO regarding internal issues, policy changes, and the concerning pattern of executive resignations that has marked recent months. As of publication, ActBlue representatives have not responded to requests for comment about these allegations.
