Here’s a scary thought: if your credit cards are stolen, they could be funding terrorism. There’s been a lot of concern about credit card fraud funding terrorism and the reality of it is it makes sense to some degree. Many of the perpetrators of 9/11 had stolen credit card numbers on their computers. In 2007, one of the al-Qaeda’s top cyber terrorists was arrested and admitted that they used stolen credit card numbers to fund $3 million worth of materials to carry out terrorist attacks.

I don’t think that credit card fraud accounts for all terrorist funding, but in light of the nonchalance that credit card companies seem to handle fraudulent charges, I have to wonder how big a role it really plays. Of course, there aren’t any specific studies that document this – only fragments of case studies that show members of terrorist cells with many stolen credit card numbers. But, think about it. Our credit card companies say we aren’t responsible for fraudulent charges. That’s great news for us, to be sure. But, the thing is, why did it happen in the first place? Credit card companies need tighter security measures. That much we already know, but for more than just the security of our private information. One of the best ways to fight terrorism is to nip its financial viability. If stolen credit cards are a big part of that, then tightening up security could put a damper on terrorist activities.

According to some journal reports I was reading earlier today, a North African terrorist funding group gathered over 200 stolen credit card numbers and raised more than GBP 200,000 to fund the al-Qaeda’s activities. They used contacts in the restaurant industry to gather credit card information from patrons and then that information was passed off to other contacts in Spain and the Netherlands. Now, I haven’t had time to research the validity of these specific claims myself; however, it doesn’t sound unreasonable. Even if only part of this were true, it’s still a disturbing thought and it really makes me want to pay cash for all restaurant transactions.

Another story of concern is the fact that Ali Al Marri was arrested in 2001 for having lied to the FBI about having contact with those involved in 9/11. At the time of his arrest, he had 36 credit card numbers and account information on him. After further research of his possessions, the FBI found more than 1,000 credit card numbers and other identifying information. Pretty unsettling, don’t you think?

There are several such stories with information about terrorists having credit card information and using it to fund their activities. It’s no secret that terrorists try to use the system for their funding – that’s why things like the Bank Secrecy Act and U.S. Patriot Act all exist. Initially, some of the legislation was put in place to counteract money laundering, but really, even that was being used to fund terrorism. So, on some level all of this legislation really boils down to preventing terrorism. Like I said, I don’t believe that credit card fraud alone funds all of these activities; however, I think credit card companies are certainly making it easy for terrorists to get a hold of our information. Just take a look at the rapidly increasing number of security breaches this year alone. It’s easy for these people to get our information, so they take it.

What do you guys think? Is this issue perhaps being blown out of proportion, or do you think it’s not receiving the attention it deserves?

Related posts:

1. Protecting yourself from credit card fraud
2. American Rights are an Illusion
3. Credit cards on your keyring?
4. Virtual Credit Card Numbers: A Security Risk?
5. Futuregoof: 4 Grand Frustrations in Credit Card Technology