ActBlue, a platform used by Democratic candidates, committees, parties, and organizations nationwide since 2004, has facilitated over $14 billion in contributions. However, in recent years, the platform has faced scrutiny for alleged money laundering following revelations that large donations were being made in individuals' names without their knowledge. When contacted, numerous people denied making these contributions. Investigative journalist James O’Keefe, CEO of O’Keefe Media Group, uncovered an instance in which a Texas woman named Barbara Staples was recorded as having donated $13,000 to ActBlue. When questioned by O’Keefe, Staples responded, “No, there’s no way I made all those.” In December, Texas Attorney General Ken Paxton initiated an investigation to determine whether ActBlue was complying with applicable laws. Paxton's office acknowledged that the platform had been the subject of numerous allegations of illicit activity and potential fraud. A key issue in the Texas investigation is ActBlue’s failure to require donors to provide “CVV” codes — the three-digit security code on the back of credit or debit cards — when making donations via credit card on the platform. CVV codes are not stored in databases, offering an extra layer of security to ensure the legitimacy of transactions. “ActBlue has cooperated with our ongoing investigation. They have changed their requirements to now include ‘CVV’ codes for donations on their platform. This is a critical change that can help prevent fraudulent donations,” Paxton said in a statement. “But it is most important that we enforce the law and protect the integrity of our elections. Certain features of campaign finance law may incentivize bad actors to use platforms like ActBlue to covertly move money to political campaigns to evade legal requirements,” he added. “While campaign finance is protected by the First Amendment, suspicious activity on fundraising platforms must be fully investigated to determine if any laws have been broken.” ActBlue Texas receives more money than any other non-candidate political action committee (PAC) in the state. Shortly after announcing her bid for president, Vice President Kamala Harris raised $81 million in the first 24 hours through ActBlue.An investigation by the Texas Attorney General into a prominent Democratic fundraising platform has resulted in changes to the organization’s donation solicitation and processing procedures.
