New Delhi: A new report from the Financial Action Task Force (FATF) released warns that terror organisations are increasingly misusing digital tools—including e-commerce platforms, VPNs and online payment services—to fund and execute attacks. The report highlights disturbing examples from India, including the Pulwama and Gorakhnath Temple incidents, to show how terrorists are adapting to modern financial systems.

How are digital platforms being used to fund terrorism?

The FATF report, released on Tuesday, highlights that social media, messaging apps, crowdfunding platforms and online financial services are being exploited to raise and move terror funds. These platforms offer anonymity and global reach, making them attractive for terror networks.

Are governments supporting terror financing?

While the report doesn’t name any specific countries, it notes that multiple FATF member delegations flagged state-sponsored terror financing. These include direct financial aid, training, logistics support and sanctions evasion through smuggling or trade routes.

What role did Amazon play in Pulwama attack?

In the Pulwama suicide bombing of 2019, which killed 40 CRPF personnel, a key component of the IED—aluminium powder—was reportedly purchased via Amazon. Indian authorities concluded that Jaish-e-Mohammed, a Pakistan-based terror group, was behind the attack and that the explosive materials had crossed the border into India.

How was PayPal used in Gorakhnath temple attack?

In the 2022 Gorakhnath temple attack in Uttar Pradesh, the accused—a lone attacker influenced by ISIL—transferred over ₹6.69 lakh through PayPal to foreign accounts. He used VPN services to mask his IP address and received additional funds from abroad. PayPal later suspended his account after the transactions raised red flags.

Are terror groups changing how they operate?

Yes. The FATF reports a shift from centralised terror networks to decentralised, locally funded cells. For example, Al-Qaeda, which once relied on a central advisory body, now works through regional wings like AQIS, which raise and manage funds independently.

Is terror financing linked to trade and gold?

Indian agencies have identified that gold and jewellery are sometimes used to store small terror funds. These assets are often kept by the individuals themselves or hidden with relatives, helping terrorists avoid banking trails. Trade-based financing is also flagged as a method used for fund transfers.

What evidence links Pakistan to Pulwama?

Indian investigators have long blamed Jaish-e-Mohammed, a terror group operating from Pakistan, for the Pulwama attack. In May 2025, during Operation Sindoor, Indian Armed Forces claimed to have eliminated around 100 terrorists, including key figures tied to Pulwama and the IC-814 hijacking.

Why is this report a wake-up call?

The FATF warns that as technology advances, terror groups are becoming more innovative in how they move money. The report urges global governments to tighten regulations, improve digital surveillance and collaborate internationally to counter this growing threat.