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This article considers the terrorism financing risk associated with the growth of Financial Technology (FinTech) innovations and in particular, focuses on virtual currency (VC) products and services. The ease with which cross-border payments by virtual currencies are facilitated, the anonymity surrounding their usage and their potential to be converted into the fiat financial system, make them ideal for terrorism financing and therefore calls for a coordinated global regulatory response. This article considers the extent of the risk of terrorism financing through virtual currencies in ‘high risk’ States by focusing on countries that have been recently associated with terrorism activities. It assesses the robustness of their financial regulatory and law enforcement regimes in combating terrorism financing and considers the extent to which Regulatory Technology (RegTech) and its global standardisation, can mitigate this risk.

VOX-Pol Blog Post.

Radicalization, which is influenced by social, cognitive, and economic variables, is the mental process that justifies violence or violent behavior. Since the invention of the Internet radical organizations have modified their tactics in order to fit the new environment. The Internet has evolved into more than simply a platform for extremist activity; it has also taken the place of the main operating environment and arena where political beliefs are developed, assaults are planned, and exceptional social movements start to take shape. Members of the group meet up online to discuss their religious beliefs and utilize these forums to broaden the scope of action at the individual and organizational levels in order to disseminate their political ideology, hire employees, and organize assaults. The conceptual framework, individual and group dynamic reasons of radicalization, metaphors for describing radicalization, radicalization driven by religion, internet radicalization, and case studies are highlighted in the current study.

This article aims to demonstrate that a greater understanding of communication in the 21st century is essential to more effective counterterrorism. In fact, while “strategic communication” and “narratives” are advocated by many analysts as essential weapons in countering extremism, few seem to truly understand the reality of the digital-age information environment where such tools need to be deployed. To contribute to bridging this gap, the article outlines some problematic misunderstandings of the contemporary information environment, provides an alternative communication-based framework to explain radicalization, and draws some counterintuitive lessons for tackling terrorism.

Why do ordinary people become supportive of violent, extremist ideologies? Over the past several years, tens of thousands of individuals across the world have become attracted to propaganda disseminated by the Islamic State (ISIS), and many have left their home countries to join the organization. This dissertation closely examines possible explanations for pro-ISIS radicalization in Europe and the United States. I argue that anti-Muslim hostility is an important driver of pro-ISIS radicalization, leading individuals who feel isolated to become attracted to the organization’s propaganda. I also contend that groups like ISIS are aware of this pattern, and thus seek to purposefully provoke hostility against potential supporters by carrying out terrorist attacks. I maintain that efforts to stop radicalization should focus on ways to reduce hostility and increase the inclusion of minorities in the West. The various dissertation papers empirically examine different aspects of these arguments. In the first paper, I examine whether anti-Muslim hostility might be driving pro-ISIS radicalization in Europe, by analyzing the online activity of thousands of ISIS sympathizers in France, Germany, Belgium, and the United Kingdom. Matching online radicalization indicators with offline data on vote share for far-right, anti-Muslim parties, I show that the intensity of anti-Muslim hostility at the local (neighborhood/municipality) level strongly correlates with support for ISIS on Twitter. In addition, I show that events that stir anti-Muslim sentiments, such as terrorist attacks and anti-Muslim protests, lead ISIS sympathizers to significantly increase pro-ISIS rhetoric, especially in areas with high far-right support. In the second paper, I argue that armed groups strategically use terrorism to manipulate levels of anti-Muslim hostility in Western countries. I test whether terrorism leads to greater expressions of anti-Muslim hostility using data on thirty-six terrorist attacks perpetrated by radical jihadists in the West from 2010 to 2016, examining how they shaped anti-Muslim attitudes among individuals in targeted countries. I find that individuals systematically and significantly increase the posting of anti-Muslim content on social media after exposure to terrorism. The effect spikes immediately after attacks, decays over time, but remains significantly higher than pre-attack levels up to a month after the events. The results also reveal that the impact of terrorist attacks on anti-Muslim rhetoric is similar for individuals who already expressed hostility to Muslims before the attacks and those who did not. Finally, I observe that the impact of terrorist attacks on anti-Muslim hostility increases with attacks resulting in greater numbers of casualties.  In the third paper, I examine what might be done to stop online radicalization and support for ISIS in the West. I collected data on community engagement events performed in the United States by the Obama Administration, which aimed to increase trust and relationships between the Muslim population and the American government, and combined them with high-frequency, geo-located panel data on tens of thousands of individuals in America who follow Islamic State accounts on Twitter. By analyzing over 100 community engagement events in a Difference-in-Differences design, I find that community engagement activities are systematically and significantly associated with a reduction in pro-ISIS rhetoric on Twitter among individuals located in event areas. In addition, the observed negative relationship between community engagement activities and pro-ISIS rhetoric is stronger in areas that held a large number of these events.

The deeply engrained nature of social media in modern life have provided ease of access to information and speed of use within almost every aspect of a person’s life. These same benefit are also available to terrorists and their organizations. The same technology that allows for a globalized world to interact without regard for distance or physical location is also utilized, exploited and adapted to by terrorist organizations to conduct operations, reach candidates and ensure organizational longevity.

This article takes the position of observer of these advancements with the end goal of informing counter-violent extremism strategists of the advances that terrorist groups have already made in digital technology; and where the priority of intervention strategies should be aimed. Further, this is intended to guide policy makers to embrace and utilize digital technologies as a mechanism to carry counter-radicalization and counter-violent extremism interventions through the same digital potential and reach the same audiences as terrorist organizations. What appears strongly apparent is that social media will not abate from its intrinsic position graphed into daily life. This means that counter-terrorism, counter-radicalization and counter-violent extremism strategies must take up the same technology in order to effectively discredit and nullify extremist groups – a digital problem needs a digital solution.