New Delhi, July 9, 2025 – A newly released report by the Financial Action Task Force (FATF) has raised serious concerns about how terrorists in India are increasingly exploiting digital platforms such as e-commerce sites, PayPal, and VPNs to plan and finance attacks. The report directly cites the Pulwama suicide bombing (2019) and the Gorakhnath Temple attack (2022) as examples of this growing trend.
Digital Trail Behind the Pulwama Bombing
According to the FATF’s latest “Comprehensive Update on Terrorist Financing Risks,” the perpetrators behind the Pulwama attack, which claimed the lives of 40 CRPF jawans, sourced critical materials — including aluminium powder used in the explosives — through online marketplaces like Amazon and other unnamed e-commerce portals.
These purchases, seemingly routine and legal on the surface, allowed the attackers to avoid detection and assemble deadly IEDs without raising alarms. The use of encrypted communication and anonymous accounts further masked their intent.
“The ease of access to dual-use materials via commercial platforms presents a serious challenge to counter-terror efforts,” the report warns.
Gorakhnath Attacker Used VPNs, PayPal for ISIS-Linked Plot
In a separate instance, the FATF highlighted the 2022 ISIS-inspired lone wolf attack on the Gorakhnath Temple in Uttar Pradesh. Investigators discovered that the accused used PayPal to move over ₹6.7 lakh, making 44 international transactions, allegedly for propaganda and radicalization purposes.
The attacker also used VPN services to hide his location and circumvent tracking tools. The payments made to VPN providers were traced back to the suspect’s Indian bank accounts, which were flagged only after PayPal froze them due to suspicious activity.
“Online financial tools, especially fintech apps and cross-border wallets, are being exploited with increasing frequency,” the FATF stated.
Terrorism 2.0: A Digital Infrastructure for Violence
The global watchdog emphasized that the digitization of terror operations is not limited to India. Terrorist groups worldwide are increasingly turning to:
- E-commerce platforms for chemicals, parts, and even 3D-printed weapons.
- Cryptocurrency and social media crowdfunding to collect donations from sympathizers.
- Encrypted messaging apps and VPNs to avoid surveillance and coordinate attacks.
These tools allow terrorists to move money faster, hide identities, and operate across jurisdictions with minimal detection.
FATF Calls for Stronger Regulations
One of the most alarming findings in the FATF report is that nearly 70% of jurisdictions assessed have serious deficiencies in investigating and prosecuting terror financing. FATF has called on governments and tech companies to:
- Strengthen Know Your Customer (KYC) protocols.
- Improve real-time monitoring of suspicious transactions.
- Increase cross-border data sharing between intelligence agencies.
- Regulate and monitor VPN services and crypto wallets.
The report also cautioned against state-sponsored terrorism financing, where some countries are accused of using trade, logistics, and black-market routes to fund proxy terror operations.
🇮🇳 India’s Response
Indian security agencies have acknowledged the FATF findings and are reportedly working on a stricter compliance regime for digital platforms. The National Investigation Agency (NIA) has also been directed to collaborate more closely with fintech firms, e-commerce giants, and international watchdogs.
Sources within the Ministry of Home Affairs confirmed that VPN use, anonymous donations, and cross-border fund transfers are now under active scrutiny.
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