Terrorist organisations are becoming increasingly tech-savvy, exploiting e-commerce platforms, online payment services, and digital technologies to finance and carry out attacks, the Financial Action Task Force (FATF) has warned in a major new report.
In its Comprehensive Update on Terrorist Financing Risks, the global terror financing watchdog cited case studies that expose how terrorists have used platforms like Amazon and PayPal to move money and acquire materials, all while evading detection.
One of the most concerning examples flagged by the FATF is the 2019 Pulwama attack, where the key component used in the explosive device was reportedly procured from EPOM Amazon. The suicide bombing in Jammu and Kashmir killed 40 CRPF personnel and was attributed to Pakistan-based terror outfit Jaish-e-Mohammed (JeM).
“a key component of the improvised explosive device used in the attack— aluminum powder—was procured through the EPOM Amazon. This material was used to enhance the impact of the blast”, the FATF report (P.173) noted.
The FATF explained how electronic point-of-sale marketplaces (EPOMs) can be exploited for trade-based money laundering. “Traded goods can indeed offer disguise to value being transferred from an accomplice to another member of the network,” the report noted. In such schemes, a terrorist could purchase items and send them through an EPOM for resale in another jurisdiction, with profits used to fund operations.
The report also referenced the 2022 Gorakhnath Temple attack in Uttar Pradesh, in which a lone assailant attacked security personnel with a sickle. Investigators found that the attacker transferred ₹6.69 lakh (USD 7,685) via PayPal to foreign entities in support of ISIL, using VPN services and third-party international transactions to mask their identity and IP address.
“On 3 April 2022, individual A attacked security personnel at Gorakhnath Temple, influenced by ISIL’s ideology. The attack was detected during the breach attempt, leading to immediate arrest. The case was transferred to Uttar Pradesh ATS, who uncovered ISIL influence through forensic analysis of individual A’s cell phone. The financial investigation revealed that individual A transferred INR 669,841 (USD 7,685) via PayPal to foreign countries in support of ISIL, using international third-party transactions and using VPN services to obscure the IP address. He also received INR 10,323.35 (USD 188) from a foreign source”, the FATF report (P. 49) noted.
69% of Countries Have Major Gaps in Tackling Terrorist Financing
Despite technological advancements in surveillance and financial regulation, the FATF found that 69% of jurisdictions assessed exhibit major or structural deficiencies in investigating and prosecuting terrorist financing (TF) cases. The report calls for immediate improvements in technical compliance, cross-border intelligence-sharing, and risk-based regulatory frameworks.
Lone Actors, Gaming Platforms, and Digital Tools on the Rise
The FATF report highlights a significant shift toward decentralised operations, with lone individuals—often younger—using microfinancing from licit sources, petty crimes, and technology-enabled methods including online gaming, social media, and crowdfunding to raise and move funds. These tactics, the FATF warns, add new layers of complexity that make detection increasingly difficult for authorities.
Humanitarian Aid at Risk
The report also raised concerns over the diversion of humanitarian aid in conflict zones, where terrorist groups exploit the chaos to reroute resources meant for civilian relief. It urges governments and international NGOs to adopt proportionate, risk-based measures that preserve humanitarian efforts while blocking exploitation by terror networks.
To aid in early detection, FATF provides a set of practical risk indicators, including red flags like unusual payment activity, irregular travel patterns, and suspicious digital behaviour.
Produced with support from the United Nations Counter-Terrorism Executive Directorate (UN CTED) and co-led by France, the report draws on data from over 80 jurisdictions, including 840 submissions from the private sector, academia, and think tanks.
FATF will host a webinar on 22 July 2025 to help stakeholders understand the emerging threats and recommended countermeasures outlined in the report.