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eBay exploited to finance terrorism

Categories : Cash generates security, Cash is trust
August 16, 2017
Tags : Online payments, Security, terrorism, US, Usage
The FBI uncovered a new terrorist financing technique via the e-commerce platform eBay.
Communication Team / Equipo de Comunicación

The FBI recently uncovered a financial network managed by a former ISIS official who was transferring funds to other jihadists via eBay. The criminals involved in the fraud exploited the popular e-commerce platform to transfer money via fake transactions in the United States.

The money was sent to Mohamed Elshinawy – an American citizen suspected to serve ISIS since 2016 – who pretended to sell printers on the e-platform. A surveillance operation carried out by the FBI revealed that the fake profile was indeed used to receive payments via PayPal to fund Islamic State’s attacks. Furthermore, Elshinawy might also have taken part in a bigger fraud scheme involving other operatives arrested in England and Bangladesh. The instigator is believed to be Siful Sujan – Bangladeshi hacker for the jihadist group and director of computer operations – who was killed in a US-led air strike in December 2015. The financial network was operated through a British technology firm founded by Sujan, which bought military surveillance equipment used for aerial targeting and worth $18,000, the FBI report says.

The affair demonstrates that terrorists are technology-savvy and capable of exploiting online breaches thanks to the recruitment of hacking experts. The Financial Action Task Force – an intergovernmental body that fights against money laundering and terrorist financing – warned that social-media fundraising, student-loan withdrawals and online lending might also be used by terrorist groups. The proliferation of digital banking instruments in the market makes it increasingly difficult for law enforcement agencies to spot and track fraudulent transactions.

Many governments worldwide are banning high-value cash transactions or withdrawing high denominations from circulation arguing that these may be used to finance terrorist activities. Unfortunately, the implementation of cash restrictions will only divert the attention from the complexity of the problem, which goes far beyond the burgeoning briefcase cliché. Digital payment methods are become increasingly more attractive for international money transfers to fund illegal activities. Indeed, online financial systems enable jihadists to anonymously exploit perfectly legal platforms to fund terror operations. For its part, eBay firmly condemned the fraud and is currently working closely with authorities to avoid any further suspicious transfers.

To read the original article, please click here.

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