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This report contains findings from the Advanced Research Workshop supported by the NATO Science for Peace and Security Programme on terrorists’ use of the Internet, held at Dublin City University on 27th-29th June 2016. The event was co-organised by the Cyberterrorism Project and the VOX-POL Network of Excellence. The workshop consisted of a total of 31 presentations, followed by a roundtable discussion during which participants formulated a set of recommendations. 60 delegates attended the symposium, from 13 different countries, including researchers and representatives from NATO HQ, NATO CCD-COE, UNICRI, the European Defence Agency, the Bavarian Police Academy and the Italian Carabinieri. This report provides summaries of each of the presentations and presents the workshop’s final recommendations.

Terrorist use of the Internet has become a focus of media, policy, and scholarly attention in recent years. Terrorists use the Internet in a variety of ways, the most important being for propaganda purposes and operations-related content, but it is also potentially a means or target of attack. This book presents revised versions of a selection of papers delivered at the NATO Advanced Research Workshop (ARW) on ‘Terrorists’ Use of the Internet’ held in Dublin, Ireland in June 2016. One aim of the workshop was to nurture dialogue between members of the academic, policy and practitioner communities, so the 60 delegates from 13 countries who attended the workshop included representatives from each of these. The participants encompassed a wide range of expertise (including engineering, computer science, law, criminology, political science, international relations, history, and linguistics) and the chapters contained herein reflect these diverse professional and disciplinary backgrounds. The workshop also aimed to address the convergence of threats. Following an introduction which provides an overview of the various ways in which terrorists use the Internet, the book’s remaining 25 chapters are grouped into 5 sections on cyber terrorism and critical infrastructure protection; cyber-enabled terrorist financing; jihadi online propaganda; online counterterrorism; and innovative approaches and responses. The book will be of interest to all those who need to maintain an awareness of the ways in which terrorists use the Internet and require an insight into how the threats posed by this use can be countered.

VOX-Pol Blog post.

This thesis asks why and how terrorist organizations use the Internet to achieve three strategic goals: 1) the dissemination of propaganda, 2) recruitment and 3) fundraising. It is immediately apparent that the Internet offers a number of advantages, including low cost, global reach, and anonymity. Nonetheless, terrorist organizations vary in their exploitation of these advantages according to their immediate objectives. To explain these variations, this thesis presents a comparative study of Al Qaeda, the Islamic State of Iraq and Syria (ISIS), and the Taliban. This study considers how different objectives render distinct narratives and thereby affect how those narratives leverage images and information in the dissemination of propaganda. Similarly, targets of recruitment vary according to the objectives of the respective organizations; this primarily affects their use of social media, including Facebook, YouTube, Twitter, and other applications. Fundraising methods also vary, from local means (extortion, narcotics, smuggling) to contemporary exploitation of digital platforms like PayPal and cell phone applications enabling anonymous donations. This thesis concludes that the sophistication of terrorist organizations online requires an equally sophisticated response that is as essential to the fight against violent extremism as kinetic operations.

This extract is taken from the author’s original manuscript and has not been edited. The definitive version of this piece may be found in New Media and the New Middle East by Philip Seib which can be purchased from www.palgrave.com

This paper explores the risk that virtual currencies (VCs) may become involved in the financing of terrorism at a significant scale. VCs and asso-
ciated technologies hold great promise for low cost, high speed, verified transactions that can unite coun- terparties around the world. For this reason they could appear appealing to terrorist groups (as they are at present to cybercriminals). Currently, however, there is no more than anecdotal evidence that terrorist groups have used virtual currencies to support themselves. Terrorists in the Gaza Strip have used virtual currencies to fund operations, and Islamic State in Iraq and Syria (ISIS) members and supporters have been particularly receptive to the new technology, with recorded uses in Indonesia and the United States.

Most terrorist funding now occurs through traditional methods such as the hawala system, an often informal and cash-based money transfer mechanism, and estab- lished financial channels.1 If VCs become sufficiently liquid and easily convertible, however, and if terrorist groups in places such as sub-Saharan Africa, Yemen, and the Horn of Africa obtain the kinds of technical infra- structure needed to support VC activity, then the threat may become more significant. The task of the law enforcement, intelligence, regu- latory, and financial services communities, therefore, must be to prevent terrorist groups from using VCs at scale. The use of VCs by “lone wolf ” terrorists—a much bigger potential threat because of the small scales of funding needed to execute an attack—represents the kind of problem in intelligence and digital forensics that law enforcement agencies are well equipped to handle, even if they tax existing resources.

Attacking terrorists’ use of virtual currency at scale is a challenging task for many stakeholders. New finan- cial technology firms often lack the resources to comply effectively with oversight obligations, while regulators have tended to devote few resources to non-bank institu- tions. At the same time, different countries have adopted varying approaches to the regulation of virtual curren- cies, posing an enforcement challenge in a globalized field that requires a unified response. Finally, the privi- leging of prevention over management of illicit finance risk in the compliance world has created an incentive structure for banks that does not, ironically, push them toward innovative approaches to countering terrorist financing, including via virtual currencies.

The counterterrorist financing community should adopt three guiding principles that will provide the foundation for policies aimed at countering both the new virtual currency threat and the broader illicit finance danger. First, policy leaders should prioritize the coun- tering of terrorist financing over other kinds of financial crime. Second, the policy and regulatory posture should be oriented toward rewarding and incentivizing innova- tion. Third, policymakers should emphasize and create a practical basis for strengthening coordination between the public and private sectors on terrorist financing. These approaches form the foundation of an effective response to existing and emerging terrorist financing threats and will balance the burden of regulatory com- pliance with the policy need to support innovative new virtual currency technologies.