The Financial Action Task Force (FATF) has issued a stern warning in its “Comprehensive Update on Terrorist Financing Risks” regarding the emerging trend of terrorists exploiting digital platforms such as e‑commerce sites, fintech services, and VPNs to procure materials and move funds undetected.

Two alarming case studies from India were highlighted. In the 2019 Pulwama attack, aluminum powder—a key explosive component—was purchased via Amazon’s EPOM service, underscoring how readily accessible online portals can facilitate dangerous procurement. In a separate 2022 incident at Gorakhnath Temple, an ISIL-inspired assailant transferred ₹6.7 lakh through PayPal and used VPNs to mask his IP, illustrating the use of anonymous transactions to fund extremist acts.

FATF also noted that 69% of assessed jurisdictions exhibit serious loopholes in anti-terror financing efforts, particularly in cross-border intelligence sharing and fintech oversight. The report warns of a wider trend: lone actors and small groups increasingly using online gaming, social media, crowdfunding, and P2P payment methods to raise money and purchase equipment.

The global watchdog urges strengthened regulatory frameworks, enhanced scrutiny of e‑commerce and payment platforms, and proactive intelligence cooperation to curb these sophisticated, digitally‑enabled threats.