Credit Cards and Terrorists

Credit Cards and Terrorists
By Dennis Lormel

As Imam Samudra sits on death row in Indonesia nearing his execution date for masterminding the Bali Nightclub Bombings in 2002, we should remember him not just as a murderous terrorist but also as a technology savvy computer expert. It’s in that latter role we should be concerned about his legacy. He is a poster child for the epidemic credit fraud terrorists confront us with. The magnitude of this problem was reinforced by Younes Tsouli, also known as (aka) Irhabi or Terrorist 007,and his two associates, Waseem Mughal and Tariq Al-Daour. These three al-Qaeda linked individuals pled guilty in the United Kingdom (U.K.) on July 2, 2007, to inciting terrorist murder via the internet. Like Samudra, they did not merely use the internet as a terrorist propaganda, communications and recruitment tool; they masterfully used it as a mechanism to perfect their cyber fraud skills. We should be extremely concerned by this. It is a threat to our National Security.

Credit card information theft and fraud has increased at a steady pace over the last five years. It is an area of vulnerability that has been increasingly exploited. As the problem continues to evolve from physical theft to more widespread use of the internet and technology to facilitate fraudulent activity, the trend will continue to track upward. Alarmingly, criminals do not have a monopoly on credit card information theft and fraud. As exemplified in the above two cases, credit card exploitation and fraud has become a growth industry for terrorists. Although there is no empirical statistical data establishing the nexus between credit card exploitation and terrorism, there are ample anecdotal case studies demonstrating how extensively terrorists rely on credit card information in furtherance of their heinous activities.

Credit cards are extremely vulnerable to fraud. They are used extensively by terrorists. There has been a proliferation of hacking and theft of credit card information. The internet not only serves as a learning tool for terrorists but also functions as a mechanism to steal credit card information through hacking, phishing and other means. In many instances, when terrorist operatives are apprehended, they have multiple identifications and credit cards in a variety of names in their possession.

Terrorists use credit cards for two purposes. They use credit cards as a funding mechanism through credit card fraud. Terrorists have raised many millions of dollars through various schemes. Credit cards are also used by terrorists as an operational mechanism. They use credit cards to support their operational activities.

As mentioned above, there is no empirical statistical data establishing the nexus between credit card exploitation and terrorism. However, there are ample anecdotal case studies demonstrating how adept terrorists are at exploiting the internet to acquire and use credit card information in furtherance of their jihadist agenda. The Samudra and Terrorist 007 cases underscore the critical importance for credit card information security.

Samudra is a member of the Al-Qaeda linked terrorist group Jamaah Islamiah in Indonesia. As noted above, he was the mastermind behind the Bali nightclub bombings in 2002 and intended to finance the Bali attack through cyberfraud.

Samudra is technologically savvy and a computer expert. While in prison in 2004, he wrote a jailhouse manifesto. It was an autobiography of his jihadist life. The book contained a chapter, entitled “Hacking, Why Not.” In it, he urged fellow Muslim radicals to take holy war into cyberspace by attacking U.S. computers. Samudra described America’s computer network as being vulnerable to hacking, credit card fraud and money laundering. The chapter did not focus on specific techniques. It focused on how to find techniques on the internet and how to connect with people in chat rooms to perfect hacking and carding skills. It was a course of study for aspiring hackers and carders. Samudra discussed the process of scanning for websites vulnerable to hacking and then went on to discuss the basics of online credit card fraud and money laundering.

One of the concerns posed by Samudra’s book was that it could serve as a roadmap leading terrorists to more accomplished hackers and enhancing the vulnerability to the U.S. National Security. In 2004, Indonesian police asserted that Indonesia had more online credit card fraud than any country in the world.

In the case of Younes Tsouli, aka Terrorist 007, and his two associates, Waseem Mughal and Tariq al-Daour, investigators in the United States (U.S.) and U.K.determined the trio used computer viruses and stolen credit card accounts to set up a network of communication forums and web sites that hosted everything from tutorials on computer hacking and bomb making to videos of beheadings and suicide bombing attacks in Iraq. These individuals were not murderous terrorists like Samudra, but were facilitators for individuals who were, making them every bit as despicable. They raised funds through credit card information theft and fraud, which were used to support the communications, propaganda and recruitment for terrorists worldwide, as well as to purchase equipment for Jihadists in the field. One expert described their activities as “operating an online dating service for al-Qaeda.” The three men pled guilty to inciting terrorist murder via the internet.

They were masters at committing cyber crime. Set forth below is a snapshot of the extent of credit card information theft and fraud they were responsible for:

• Stolen credit card numbers and identities were used to buy web hosting services. At least 72 stolen credit card accounts were used to register more than 180 web site domains at 95 different web hosting companies in the U.S. and Europe.

• On one computer seized from al-Daour’s apartment, some 37,000 stolen credit card numbers were found. Alongside each credit card record was other information on the identity theft victims, such as the account holder’s address, date of birth, credit balances and limits.

• More than $3.5 million in fraudulent charges were made using credit card accounts stolen via online phishing scams and the distribution of Trojan horses.

• The men purchase sophisticated equipment needed by Jihadists in the field and other operational resources, including hundreds of prepaid cell phones, and more than 250 airline tickets using 110 different credit cards at 46 airlines and travel agencies.

• They laundered money through online gambling sites, using accounts set up with stolen credit card numbers and victims’ identities. The trio conducted 350 transactions at 43 different online wagering sites, using more than 130 compromised credit card accounts.

An important commonality between Samudra, and Terrorist 007 and his associates is that they are extremely proficient at exploiting and navigating the internet. They are opportunists and will take advantage of obtaining credit card information by any means available from any repository of information. Troublingly, they also left a roadmap for other extremists to follow to perpetuate and improve upon their methodologies. This poses a serious threat to our economic well being and National Security.
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source from:-http://counterterrorismblog.org/2008/01/credit_cards_and_terrorists.php