Even taking these bloggers at face value and assuming they were willing to commit fraud and donate to their opponent’s campaign to prove a point, I don’t think this proves any kind of scandal.
The McCain campaign only asks for a billing address, not a home address. So how do they prevent donations from people who now live outside the country? Answer: either they don’t, or they do it the same way the Obama campaign does (i.e. not AVS). But even if McCain’s campaign sets a higher security threshold, it’s sort of silly to compare the McCain campaign’s controls to the Obama campaign’s. It’s easy to be over-secure and prevent legitimate donors when your campaign is publicly-financed.
Using AVS creates many false negatives. Americans abroad, for example, will have difficulties because AVS only supports U.S. banks. Not to mention the issues of having one’s name on the card, etc. Presumably the Obama campaign faced a decision at some point: set the credit card security such that some valid donors will be prevented from donating or such that some invalid now-felons will not be prevented. If they thought they could catch all or most of the invalid donors by other means, I don’t think you can blame them for choosing the first option. The law certainly doesn’t force them to let some third-party corporation do their eligibility screening.
If it should turn out that the system was used by wealthy donors or foreigners to circumvent campaign finance laws (and I assume given sufficient time the FEC could determine this), I’ll be the first to get on board amendments to the FEC law requiring campaigns to do more. But in the absence of any such evidence (and we don’t even know if the bloggers fraudulent contributions have gotten spent–the Obama can take as long as it wants to review them so long as it doesn’t spend them first), to ask the Obama campaign to screen out legit donors when we don’t even know if it is preventing fraud is asking a little too much IMHO. I know Dems are supposed to be the good guys, but they shouldn’t have to be the self-sacrificial guys.