"A society that applauds innovation in the world of business can hardly expect to escape innovation in the world of crime."
- Criminologist, Leon Radzinowicz -
Since the attack of the world trade center in the United States on September, 11 the word terrorist attack has become a big media attraction. Looking and examining the 'modus operandi' of a terrorist attack and their strategy in the attack shows that in performing such act requires them to have access to financial sources. It is possible that now the current trend that terrorist organization may be linked to business organization.
In order to ensure that these business gain maximum return from its transactions enabling the terrorist organization to meet its objectives, these business may be involve in white-collar crime activities i.e. fraud. Some might perceive that fraud is not linked to terrorism since white-collar crime issues are more the province of organized crime, but such perception may be misguided. Looking at how terrorists organization operates in its terrorist act ranging in scale and sophisticated from a low-level crime to an organized crime they require financial funds to operate.
Such operation needs a vehicle i.e. companies to generate accessible funds. These vehicle may be involve in credit card fraud, wire-transfer fraud, mortgage fraud, charitable donation fraud, insurance fraud, identity theft, money laundering, immigration fraud, and tax evasion. These may be some of the common types of fraud transacted to fund terrorist cells.
These vehicle will also be used by the group to receive and distribute illicit funds even though on the surface, these vehicle might engage in legitimate activities in order to establish a positive reputation in the business community.
Thus, financing is required not just to fund specific terrorist operations but to meet the broader organizational costs of developing and maintaining a terrorist organization and to create an enabling environment necessary to sustain their activities.
Extracted from Fraud Magazine Newsletter Association of Certified Fraud
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