New Delhi, July 8, 2025 : A recent report by the Financial Action Task Force (FATF) has revealed alarming insights into how terrorist groups are increasingly exploiting online platforms for financing and logistics. The report highlighted the Pulwama and Gorakhnath attacks in India as key examples of how digital tools are being misused to support acts of terrorism.

According to the FATF, attackers in both incidents used a combination of e-commerce websites, digital payment gateways, VPNs, and social media to finance and coordinate their actions. These platforms were not only used to collect funds but also to procure materials and services essential for executing the attacks.

In the Pulwama attack of February 2019, a suicide bomber targeted a CRPF convoy, killing 40 personnel. Investigations revealed that aluminum powder, used in the explosive device, was purchased through an e-commerce website. The attack, orchestrated by Pakistan-based terror outfit Jaish-e-Mohammed, underscored how easy access to digital marketplaces can be weaponized for mass violence.

Similarly, in the Gorakhnath Temple attack of April 2022, an individual inspired by ISIS ideology attempted to storm the temple premises in Uttar Pradesh. Subsequent financial probes uncovered the use of VPNs and encrypted messaging apps. Investigators found that over ₹6.7 lakh had been routed through digital payment services like PayPal and funneled to foreign accounts to facilitate the attack.

The FATF report refrained from naming any specific country, but it noted that delegations had reported cases of state sponsorship in terrorist financing. This includes not only direct financial aid but also logistical and political support provided by states to terrorist groups as part of broader strategic objectives.

The report further warns that the rise in use of online tools for terror financing poses a serious challenge to global security. Unlike traditional methods of money laundering, digital channels are decentralized, anonymous, and harder to trace. Terrorist groups are now increasingly self-sufficient, relying on criminal enterprises, donations through crowdfunding platforms, and digital wallets to sustain operations.

Another troubling trend highlighted is the decentralization of terror cells, which now function with increased autonomy in local hubs. These groups often blend into civilian populations, run legal or semi-legal businesses, and use profits to fund terror activities, all while maintaining a strong digital footprint for coordination and funding.

The FATF urged member states to implement stricter regulations on e-commerce platforms and digital payment providers. It called for stronger Know Your Customer (KYC) norms, real-name identity verification for online transactions, and closer cooperation between financial institutions and law enforcement agencies.

The report concludes with a call for enhanced international collaboration, stressing that no single country can combat the evolving threat of digital terror financing alone. It encourages countries to share intelligence in real time and adopt FATF’s updated standards to detect and dismantle financial networks tied to terrorism.

The revelations from the Pulwama and Gorakhnath investigations serve as a stark reminder that as digital tools evolve, so do the methods of those who wish to exploit them. The challenge now lies in staying one step ahead through smart regulation, technology, and global cooperation.