Stacy Blatt was in hospice care last September listening to Rush Limbaugh’s dire warnings about how badly Donald Trump’s campaign needed money when he went online and chipped in everything he could: $500.
It was a big sum for a 63-year-old battling cancer and living in Kansas City on less than $1,000 per month. But that single contribution — federal records show it was his first ever — quickly multiplied. Another $500 was withdrawn the next day, then $500 the next week and every week through mid-October, without his knowledge — until Blatt’s bank account had been depleted and frozen. When his utility and rent payments bounced, he called his brother, Russell Blatt, for help.
What the Blatts soon discovered was $3,000 in withdrawals by the Trump campaign in less than 30 days. They called their bank and said they thought they were victims of fraud.
“It felt,” Russell Blatt said, “like it was a scam.”
But what the Blatts believed was duplicity was actually an intentional scheme to boost revenues by the Trump campaign and the for-profit company that processed its online donations, WinRed. Facing a cash crunch and getting badly outspent by the Democrats, the campaign had begun last September to set up recurring donations by default for online donors for every week until the election.
Contributors had to wade through a fine-print disclaimer and manually uncheck a box to opt out.
As the election neared, the Trump team made that disclaimer increasingly opaque, an investigation by The New York Times showed. It introduced a second prechecked box, known internally as a “money bomb,” that doubled a person’s contribution. Eventually its solicitations featured lines of text in bold and capital letters that overwhelmed the opt-out language.
The tactic ensnared scores of unsuspecting Trump loyalists — retirees, military veterans, nurses and even experienced political operatives. Soon, banks and credit card companies were inundated with fraud complaints from the president’s own supporters about donations they had not intended to make, sometimes for thousands of dollars.
“Bandits!” said Victor Amelino, a 78-year-old Californian, who made a $990 online donation to Trump in early September via WinRed. It recurred seven more times — adding up to almost $8,000. “I’m retired. I can’t afford to pay all that damn money.”
The sheer magnitude of the money involved is staggering for politics. In the final 2 1/2 months of 2020, the Trump campaign, the Republican National Committee and their shared accounts issued more than 530,000 refunds worth $64.3 million to online donors. All campaigns make refunds for various reasons, including to people who give more than the legal limit. But the sum the Trump operation refunded dwarfed that of Joe Biden’s campaign and his equivalent Democratic committees, which made 37,000 online refunds totaling $5.6 million in that time.
The recurring donations swelled Trump’s treasury in September and October, just as his finances were deteriorating. He was then able to use tens of millions of dollars he raised after the election, under the guise of fighting his unfounded fraud claims, to help cover the refunds he owed.
In effect, the money that Trump eventually had to refund amounted to an interest-free loan from unwitting supporters at the most important juncture of the 2020 race.
Marketers have long used ruses like prechecked boxes to steer American consumers into unwanted purchases, like magazine subscriptions. But consumer advocates said deploying the practice on voters in the heat of a presidential campaign — at such volume and with withdrawals every week — had much more serious ramifications.
“It’s unfair, it’s unethical, and it’s inappropriate,” said Ira Rheingold, executive director of the National Association of Consumer Advocates.
Harry Brignull, a user experience designer in London who coined the term “dark patterns” for manipulative digital marketing practices, said the Trump team’s techniques were a classic of the “deceptive design” genre.
“It should be in textbooks of what you shouldn’t do,” he said.
Political strategists, digital operatives and campaign finance experts said they could not recall ever seeing refunds at such a scale. Trump, the RNC and their shared accounts refunded far more money to online donors in the last election cycle than every federal Democratic candidate and committee in the country combined.
Overall, the Trump operation refunded 10.7% of the money it raised on WinRed in 2020; the Biden operation’s refund rate on ActBlue, the parallel Democratic online donation-processing platform, was 2.2%, federal records show.
Several bank representatives who fielded fraud claims directly from consumers estimated that WinRed cases, at their peak, represented as much as 1% to 3% of their workload. An executive for one of the nation’s larger credit card issuers confirmed that WinRed at its height accounted for a similar percentage of its formal disputes.
That figure may seem small at first glance, but financial experts said it was a shockingly large percentage, considering that political donations represent a tiny fraction of the overall U.S. economy.
In its investigation, the Times reviewed filings with the Federal Election Commission from the Trump and Biden campaigns and their shared accounts with political parties, as well as the donation-processing sites ActBlue and WinRed, compiling a database of refunds issued by day. The Times also interviewed two dozen Trump donors who made recurring donations as well as campaign officials, campaign finance experts and consumer advocates. Nearly a dozen bank and credit card officials from the nation’s leading financial institutions spoke for this article on the condition of anonymity to discuss internal matters.
A clear pattern emerged. Donors typically said they intended to give once or twice and only later discovered on their bank statements and credit card bills that they were donating over and over again. Some, like Stacy Blatt, who died of cancer in February, sought an injunction from their banks and credit cards. Others pursued refunds directly from WinRed, which typically granted them to avoid more costly formal disputes.
WinRed said that every donor receives at least one follow-up email about pending repeat donations in advance and that the company makes it “exceptionally easy,” with 24-hour customer service, for people to request their money back. “WinRed wants donors to be happy and puts a premium on customer support,” said Gerrit Lansing, WinRed’s president. “Donors are the lifeblood of GOP campaigns.” He noted that Democrats and ActBlue had also used recurring programs.
Jason Miller, a spokesperson for Trump, downplayed the rash of fraud complaints and the $122.7 million in total refunds issued by the Trump operation. He said internal records showed that 0.87% of its WinRed transactions had been subject to formal credit card disputes. “The fact we had a dispute rate of less than 1% of total donations despite raising more grassroots money than any campaign in history is remarkable,” he said.
That still amounts to about 200,000 disputed transactions that Miller said added up to $19.7 million.
“Our campaign was built by the hardworking men and women of America,” Miller said, “and cherishing their investments was paramount to anything else we did.”
Asked if Trump had been aware of his operation’s use of recurring payments, the campaign did not respond.
Trump’s hyperaggressive fundraising practices did not stop once he lost the election. His campaign continued the weekly withdrawals through prechecked boxes all the way through Dec. 14 as he raised tens of millions of dollars for his new political action committee, Save America.
In March, Trump urged his followers to send their money to him — and not to the traditional party apparatus — making plain that he intends to remain the gravitational center of Republican fundraising online.
A Small Yellow Box and a Flood of Fraud Complaints
The small and bright yellow box popped up on Trump’s digital donation portal around March 2020. The text was boldface, simple and straightforward: “Make this a monthly recurring donation.”
The box came prefilled with a checkmark.
Even that was more aggressive than what the Biden campaign would do in 2020. Biden officials said they rarely used prechecked boxes to automatically have donations recur monthly or weekly; the exception was on landing pages where advertisements and emails had explicitly asked supporters to become repeat donors.
But for Trump, the prechecked monthly box was just the beginning.
By June, the campaign and the RNC were experimenting with a second prechecked box, to default donors into making an additional contribution — called the money bomb. An early test arrived in the run-up to Trump’s birthday, June 14. The results were tantalizing: That date, a seemingly random Sunday, became the biggest day for online donations in the campaign’s history.
Ronna McDaniel, the RNC chair, crowed to Fox News about the achievement without mentioning how exactly the party had pulled it off. “Republicans are thinking smarter digitally,” she said, and were poised to “outwork, outdo and outmaneuver the Democrats at every turn.”
The two prechecked yellow boxes would be a fixture for the rest of the campaign. And so would a much larger volume of refunds.
Until then, the Biden and Trump operations had nearly identical refund rates on WinRed and ActBlue in 2020: 2.18% for Trump and 2.17% for Biden.
But from the day after Trump’s birthday through the rest of the year, Biden’s refund rate remained nearly flat, at 2.24%, while Trump’s soared to 12.29%.
In early September — just after learning that it had been outraised by the Biden operation in August by more than $150 million — the Trump campaign became even more aggressive.
It changed the language in the first yellow box to withdraw recurring donations every week instead of every month. Suddenly, some contributors were unwittingly making as many as a half-dozen donations in 30 days: the intended contribution, the “money bomb” and four more weekly withdrawals.
“You don’t realize it until after everything is already in motion,” said Bruce Turner, 72, of Gilbert, Arizona, whose wife’s $1,000 donation in early October became $6,000 by Election Day. They were refunded $5,000 the week after the election, records show.
Around the same time, officials who fielded fraud claims at bank and credit card companies noticed a surge in complaints against the Trump campaign and WinRed.
“It started to go absolutely wild,” said one fraud investigator with Wells Fargo. “It just became a pattern,” said another at Capital One. A consumer representative for USAA, which primarily serves military families, recalled an older veteran who discovered repeated WinRed charges from donating to Trump only after calling to have his balance read to him by phone.
The unintended payments busted credit card limits. Some donors canceled their cards to avoid recurring payments. Others paid overdraft fees to their bank.
All the banking officials said they recalled only a negligible number of complaints against ActBlue, the Democratic donation platform, although there are online review sites that feature heated complaints about unwanted charges and customer service.
The Trump operation was not done modifying the yellow boxes. Soon, the fact that donations would be withdrawn weekly was taken out of boldface type, according to archived versions of the president’s website, and moved beneath other bold text.
As the campaign’s financial problems became increasingly acute, the yellow boxes became dizzyingly more complex.
By October there were sometimes nine lines of boldface text — with ALL-CAPS words sprinkled in — before the disclosure that there would be weekly withdrawals. As many as eight more lines of boldface text came before the second additional donation disclaimer.
Even political professionals fell prey to the boxes.
Jeff Kropf, executive director of the Oregon Capitol Watch Foundation, a conservative group, said he had been “very careful” to uncheck recurring boxes — yet he missed the “money bomb” and got a second charge anyway.
“Until WinRed fixes their sneaky way of adding additional contributions to credit cards like they did to me, I won’t use them again,” he said.
Brignull, the user experience designer who also serves as an expert witness in legal cases involving misleading advertising, noted that a Consumer Rights Directive in Europe prohibits companies from deploying a defaulted opt-in tactic for recurring payments.
“It is very easy for the eye to skip over,” he said. “The only really meaningful information in that box is buried.”
The ‘Gary and Gerrit’ Operation
By last summer, the Biden campaign had begun outraising Trump’s team, and the president was hopping mad. For months, years even, his advisers had been telling him how he had built a one-of-a-kind financial juggernaut. So why, Trump demanded to know, was he off the television airwaves just months before the election in critical battleground states like Michigan?
“Where did all the money go?” he would lash out, according to two senior advisers.
Inside the Trump reelection headquarters in Northern Virginia, the pressure was building to wring ever more money out of his supporters.
Perhaps nowhere was that pressure more acute than on Trump’s expansive and lucrative digital operation. That was the unquestioned domain of Gary Coby, a 30-something strategist whose title — digital director — and microscopic public profile belied his immense influence on the Trump operation, especially online.
A veteran of the RNC and the 2016 race, Coby had the confidence, trust and respect of Jared Kushner, the president’s son-in-law, who unofficially oversaw the 2020 campaign, according to people familiar with the campaign’s operations. Kushner and the rest of the campaign leadership gave Coby, whose talents are recognized across the Republican digital industry, wide latitude to raise money however he saw fit.
That meant almost endless optimization and experimentation, sometimes pushing the traditional boundaries. The Trump team repeatedly used phantom donation matches and faux deadlines to loosen donor wallets (“1000% offer: ACTIVATED…For the NEXT HOUR”). Eventually it ratcheted up the volume of emails it sent until it was barraging supporters with an average of 15 per day for all of October and November 2020.
Coby, who declined an interview request for this article, outlined his philosophical approach when offering advice to other ambitious young strategists after he was named to the American Association of Political Consultants’ “40 under 40” list in 2017: “Asking for forgiveness is easier than permission.”
Coby’s partner in fundraising was Lansing, president of WinRed, which had been created in 2019 as a centralized platform for GOP digital contributions after prominent Republicans feared they were falling irreparably behind Democrats and ActBlue.
The Trump and WinRed operations had been closely aligned since the platform’s inception — Trump reportedly helped come up with the firm’s name — and the president’s reelection operation amounted to a majority of all of WinRed’s business last cycle, when it processed more than $2 billion.
Inside the Trump orbit, “Gary and Gerrit” became something of a shorthand term for Coby and Lansing, according to multiple senior Trump campaign and White House officials.
The two strategists were already well acquainted; they had worked together at the RNC in 2016, when Lansing oversaw its digital operations and Coby was director of advertising. And they were business partners in Opn Sesame, a text messaging platform, which Lansing co-founded and served as chief operating officer for; WinRed said he stepped away from its day-to-day operations in early 2019.
Top Trump officials said they did not know specifically who had conceived of using the weekly recurring prechecked boxes — or who had designed them in the increasingly complex blizzard of text. But they said virtually all online fundraising decisions were a “Gary and Gerrit” production.
“The campaigns determine their own fundraising strategies and make their own decisions on how to use these tools,” Lansing said in WinRed’s statement.