FATF raises alarm on terrorists using e-commerce sites and online payment facilities, cites procurement of explosive material for Pulwama attack from Amazon
The Financial Action Task Force (FATF), the international watchdog that tracks terror funding, has identified serious concerns regarding the use of e-commerce sites and online payment facilities by terrorists to execute and finance attacks. In a recent report published on Tuesday, 8th July, FATF cited instances such as the 2019 Pulwama attack and the 2022 Gorakhnath Temple attack in India to bring attention to this increasing danger.
The report, Comprehensive Update on Terrorist Financing Risks, reveals terrorists’ persistent ability to exploit the international financial system to support their activities and carry out attacks.
Pulwama Attack Used Online Platforms for Explosives, Says FATF
As per FATF’s findings, key materials used in the 2019 Pulwama attack were bought through an e-commerce platform. The report says that aluminium powder, which was used to make the explosive more powerful, was purchased via Amazon.
On 14th February, 2019, a suicide bombing targeted a convoy of Indian Security forces in Pulwama in Jammu & Kashmir, resulting in the deaths of 40 soldiers. India’s authorities concluded that the attack was orchestrated by Jaish-e-Mohammed (JeM), a Pakistan-based terror group. The suicide bomber was identified as Adil Ahmad Dar. After the investigation, 19 people, including seven foreign nationals, were charged under India’s anti-terror laws
FATF said the materials were part of an improvised explosive device (IED) that caused the deadly blast. FATF mentioned that in such cases, terrorists are using platforms like Amazon to quietly buy equipment and chemicals. These platforms also help them move money in ways that are difficult to track.
Lone-wolf attacker in Gorakhnath temple case used PayPal and VPN: FATF
The FATF report also discusses the 2022 Gorakhnath Temple incident in Uttar Pradesh.
On April 3, a man identified as Ahmad Murtaza Abbasi initiated an attack on Gorakhnath Temple in Uttar Pradesh. The incident took place just a day before UP CM Yogi Adityanath was scheduled to visit the temple. Abbasi’s family claimed he was mentally unstable, but the claims were refuted by the Police and doctors who treated him after the attack.
According to FATF, the attacker, who was influenced by ISIS (Islamic State of Iraq and Syria) ideology, used online payment services like PayPal to send nearly ₹6.7 lakh (around $7,685) abroad in support of the terror group.
The person also received money from a foreign source and used a VPN to hide his identity online. The report says he made 44 international transactions through PayPal and even paid for VPN services through his bank account.
Due to these suspicious activities, PayPal suspended his account to stop further misuse. FATF said that such use of digital payment platforms gives terrorists new ways to transfer money and stay hidden.
State support for Terrorism still a big problem
The FATF didn’t just stop at online platforms. It also raised concerns over the role of national governments in supporting terrorist groups. According to the report, some terrorist organisations continue to receive financial help, training, and logistical support from certain governments.
Though the report doesn’t directly name countries, India has often accused Pakistan of backing terrorist organisations like JeM. Indian officials have long maintained that Pakistan shelters designated terrorists and misuse international funds to aid terror activities.
As per FATF, this kind of state support is often used not only for funding attacks but also for long-term management of terror operations.
How terrorists use online shopping and payments
According to FATF, terrorists have found multiple ways to misuse e-commerce platforms, also known as Electronic and Physical Online Marketplaces (EPOMs).
These platforms are being used not just to purchase materials like chemicals, weapons, and other equipment, but also to sell items and generate funds for terrorist activities. Some even use fake transactions to disguise the movement of money, a method similar to trade-based money laundering.
FATF noted that platforms which offer easy access across borders and allow anonymous or pseudonymous payments are particularly at risk. Such digital tools have become preferred channels for not only organised terror groups but also lone actors and extremist groups motivated by ethnic or racial ideologies to fund their operations and spread propaganda.
Terror groups getting smarter with technology
FATF said that with the rise of fintech companies and peer-to-peer (P2P) payment apps, terrorists now have more ways to move money secretly. These services tend to permit the use of fictitious identities or pseudonyms, which complicate it for investigators to identify the origins of the funds.
FATF added that groups are even utilising social media to collect funds in the form of donations and crowdfunding, bringing recruitment, propaganda, and financing all together in one location.
What FATF wants the government to do
FATF has urged its 200 member jurisdictions to enhance monitoring of virtual financial services and better regulate online platforms.
The organisation advises monitoring suspicious activity on web-based e-commerce sites, tightening controls on peer-to-peer payment services, and collaborating closely with international platforms such as PayPal and Amazon to identify and prevent abuse.
FATF wrapped up by cautioning that while terrorists keep embracing sophisticated digital practices, it is only through robust international collaboration that they would be stopped from misusing online platforms to fund terrorism.
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