TERRORISM FREQUENCY 1/2018 - Pool Re
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TERRORISM FREQUENCY 1/2018 Quarterly Report Welcome to our first Terrorism Frequency Report /02 Is the IED making a comeback as the Islamist terrorist weapon of choice? /03 Q4/2017 A review of significant incidents /05 Possible al Qaeda–Daesh merger /08 The ‘Virtual Caliphate’ /10 Destructive cyber terrorism: When, not if? /11
02 Introduction 05 Q4/2017 A review of significant incidents 10 The ‘Virtual Caliphate’ 03 Is the IED making a comeback as the 08 Possible al Qaeda–Daesh merger 11 Destructive cyber terrorism: When, not if? Islamist terrorist weapon of choice? INTRODUCTION Snapshot 2017 saw a step change in the terrorist In this first edition of our new threat bulletin, Terrorism Frequency Report, we look at the threat to the UK: establishment of a ‘Virtual Caliphate’ following the military defeat of Daesh in Iraq and Syria, and the consequences on counter terrorist (CT) operations and business resilience to terrorist incidents. It also discusses the threat posed by improvised explosive devices (IEDs), using online recipes and forums, as a means of causing damage and inflicting mass casualties in a potential shift towards ‘insurgency style’ terrorist tactics on the streets of the UK. 5 Successful attacks in the UK In future, these threats are unlikely to reduce, with Islamist extremism being the main driver. More attacks should be expected in the UK in 2018 and these are likely to be focused against crowded places, particularly those linked to the transport sector, the military, police and 36 politicians. The attackers are likely to claim Deaths inspiration from Daesh or AQ whilst having minimal, if any, links to the group’s leadership. Off the shelf technologies and combined methodologies, including the use of more powerful home-made and commercially available explosives and IEDs, is likely 300+ to increase in 2018. Injuries We are delighted that Conrad Prince, the recently retired Deputy Director of GCHQ, has shared his thoughts and experiences on We consider how Daesh may return to its the threat of terrorists enhancing their cyber al Qaeda (AQ) roots, with the two organisations capabilities to cause physical harm through the potentially finding more to agree upon. Should use of a cyber-trigger to cause a fire or explosion. they merge, the resulting jihadi eco-system could pose a greater threat to the UK, with Pool Re has recently taken steps to close extremists having access to a wider range of the cyber gap with the inclusion in its cover human, technical and financial resources to plan (from 1 April 2018) of physical acts of MI5 and police and undertake attacks at a higher frequency and severity than has been previously witnessed. destruction caused by a cyber trigger into the scheme. We are also working closely with all response: A merger would also likely to result in a more resilient terrorist entity. our stakeholders in identifying and closing the Protection and Information gaps. We continue to explore ways of including Non-Damage 10 Disrupted 2017 saw a step change in the terrorism threat Business Interruption (NDBI) into the scheme attacks posed by both Islamist and Far Right extremists, and, at the same time, seek to increase the with five successful attacks in the UK, causing take-up of terrorism insurance by the small and 400 Arrested for 36 deaths and over 300 injuries; fortunately, medium-sized enterprises (SMEs) to meet these terrorism-related another 10 were thwarted by MI5 and the police. unprecedented threats. offences Over 300,000 items of terrorist-related material 300,000 Items of terrorist have been removed from the Internet since related material 2010; up from 250,000 in December 2016. The Conclusion removed from UK’s CT agencies continue to work at capacity As we move into 2018, a year that could the internet to detect and disrupt further plots and attacks. bring unprecedented levels of terrorism risk to the UK mainland, the effective partnering Events in 2017 may have been the tipping point of Government, the insurance industry and in the way Daesh and AQ have operated over businesses will be critical to the continued the last four years; 2018 may herald a far more resilience of the UK. Current UK complex and dangerous period for democracies fighting extremism, especially with the threat level: exploitation of the internet and encrypted messaging. The combined effect of the loss of the ‘physical so-called Caliphate’ and successful CRITICAL disruptive CT operations may be leading to a Ed Butler CBE DSO SEVERE Threat level from trend of more ‘disorganised terrorism’ and the Head of Risk Analysis, Pool Re international terrorism driving of terrorists into the ungoverned spaces ! to the UK of the Internet and failed states causing a decentralised and ‘Virtual Caliphate’. If this is SUBSTANTIAL Threat level from the case, then we will be returning to a similar Northern Ireland-related situation recognised pre-Caliphate, when ! terrorism to GB successful drone strikes in the Tribal areas of MODERATE Pakistan forced aspiring terrorists, with nowhere else to go and fight, to undertake more attacks LOW against the Western world. Pool Re TERRORISM FREQUENCY Quarterly Report 02
02 Introduction 05 Q4/2017 A review of significant incidents 10 The ‘Virtual Caliphate’ 03 Is the IED making a comeback as the 08 Possible al Qaeda–Daesh merger 11 Destructive cyber terrorism: When, not if? Islamist terrorist weapon of choice? Q. Eden Stewart Analyst IS THE IED MAKING A COMEBACK AS THE ISLAMIST TERRORIST WEAPON OF CHOICE? Manchester Arena attack Parsons Green attack Terrorist use of IEDs has been a long-standing Carried out six months after Manchester threat to the UK. However, until the Manchester Arena bombing in May 2017, terrorists had Key attack characteristics: Key attack characteristics: not successfully launched such an attack Crowded place targeted Crowded place targeted in the UK (despite a number of plots) since Triacetone Triperoxide used within Triacetone Triperoxide used within the July 7 bombings in 2005. Proscribed the IED the IED organisations like AQ and Daesh have encouraged aspiring attackers in the West to British resident British resident mount less complex attacks using vehicles and Known to police and MI5 Known to police and MI5 knives as weapons. Most Islamist attacks in Device constructed using available Device constructed using available Europe since 2013 employed this methodology. instructions online instructions online However, attacks and plots involving IEDs are now increasingly likely. Timer added to the IED The Manchester bomb was inconsistent with the perceived trend towards low complexity attacks, and the vehicle and marauding bladed attack which started on London Bridge in June seemingly confirmed the use of an IED in Manchester as anomalous. However, on 15 September, an IED partially detonated on a tube train at Parsons Green station. The attack shared some similarities with the one in Manchester six months earlier: crowded places were targeted; Triacetone Triperoxide (TATP) manufactured from legally available materials was used in both devices; and the bombers, both British residents with immigrant TRAC insight: backgrounds, were known to police and MI5. Guerrilla-like attacks in the UK In both instances, the UK threat level was raised The reported inclusion of a timer to CRITICAL while MI5 and the police sought to to the IED at Parsons Green identify further suspects and to negate the risk could indicate a desire to of further devices being used in attacks. commence a prolonged series of attacks, rather than a single explosion. Pool Re TERRORISM FREQUENCY Quarterly Report 03
02 Introduction 05 Q4/2017 A review of significant incidents 10 The ‘Virtual Caliphate’ 03 Is the IED making a comeback as the 08 Possible al Qaeda–Daesh merger 11 Destructive cyber terrorism: When, not if? Islamist terrorist weapon of choice? Is the IED making a comeback as the The reported inclusion of a timer to the device Islamist terrorist weapon of choice? at Parsons Green is significant. The intended detonation of a bomb, without the operative Links to sources of further information: Continued killing themselves in the process, could indicate a desire to commence a prolonged series of The successful use of IEDs in two Islamist attacks, rather than a single explosion. Such attacks within six months of each other methodology is consistent with the intent to potentially signalled an increase in the capability conduct a sustained bombing campaign. Action Counters Terrorism (ACT) of terrorists operating in the UK. Both Salman This would mark a further deviation from recent Knowing how to recognise and report Abedi and Ahmed Hassan (responsible for the plots or attacks which resulted in the death of suspicious activity is important in keeping safe Manchester and Parsons Green attacks the terrorist at the time and scene of their attack. from terrorism. Read more on the ACT website, respectively) displayed the ability to construct which offers advice and guidance on how to explosive devices using commercially available The attacks in Manchester and London highlight report concerns including both physical and materials, and to deploy those devices without the relative ease with which extremists in the UK online activity. being detected. Abedi also conducted can construct viable IEDs utilising commercially pre-attack reconnaissance and identified available ingredients and components. The police key vulnerabilities of public venues like the and MI5 continue in their efforts to reduce the Manchester Arena. This suggests that Abedi availability of both precursor chemicals and may have received training or support from online materials providing instruction on the Centre for the Protection of National an overseas third party, or used instructional production of explosive devices. Making their Infrastructure (CPNI) manuals available online. Hassan was able to acquisition more difficult should be a priority for Their website offers a wide range of advice, construct a viable device, although the timing suppliers in the commercial chain. Companies not just for national infrastructure assets. of his attack appears to have been premature that trade in the relevant precursor chemicals Read more on their guidance for disrupting considering the construction of the device and should consider the reputational damage to their hostile reconnaissance here. its ultimate failure to detonate successfully. organisation if they sell to a terrorist, particularly if they have been negligent in procedures to check Terrorist attack plans including those involving customers. Businesses should be aware of the explosives are frequently disrupted, illustrated increasingly diverse methodologies employed by the series of arrests in Chesterfield and by UK terrorists, and take appropriate action Cross-sector Safety and Security Sheffield just before Christmas 2017. The to protect their premises and prepare their Communications success of Abedi and Hassan, however, is more employees for such an eventuality. Additionally, A partnership between law enforcement likely attributable to MI5 and police operating at post-incident responses to the use or suspected agencies, local and national government capacity due to the heightened threat use of explosives by terrorists frequently involve organisations and private sector businesses. environment, rather than to an increase in the comprehensive cordons which can result in Register your business to receive security sophistication of threat actors. It is significant significant business interruption for businesses updates on the CSSC website. that both Abedi and Hassan were not known located near the scene (in addition to the to be under direction from international terror expected property damage from explosions). groups (Abedi may, however, have received In 2017, IEDs were the attack method most likely advice but not explicit instruction), although they to cause damage, whether property was the are highly likely to have had access to extremist intended target or not. It’s unlikely to be The UK threat levels are set by MI5 and the media. In contrast, earlier recent Islamist attacks coincidental that the police offered IED specific Joint Terrorism Analysis Centre, JTAC. in Europe which involved explosives were advice to the business community (available Read more about them and international conducted by cells with links to Daesh’s external here) the same day as the arrests in December. terrorism via the MI5 website. operations unit. This could indicate an increased willingness on the part of ‘inspired’ actors to undertake more complex attacks using IEDs. Conclusion Regardless, successful attacks will contribute Should the step change in terror threat to the motivation of aspiring terrorists. seen this last year be indicative of the likely London Protect frequency of attacks in the next 12 months, Run by the Metropolitan Police, London Protect publishes monthly newsletters to provide regular IT IS SIGNIFICANT further use of IEDs against similar targets is probable. Those attacks are likely to be updates advising and informing businesses in the London region of relevant protective security THAT BOTH Islamist extremist in nature, the IEDs made from commercially available materials and information. Follow their Twitter here. ABEDI AND used against a range of targets including crowded places, transport hubs and iconic HASSAN WERE sites. The possibility of further IEDs having timers, rather than used as part of a See It, Say It, Sorted NOT KNOWN martyrdom operation, is indicative of a sustained bombing campaign rather than A campaign to encourage train passengers and station visitors to report any unusual items or TO BE UNDER isolated attacks. This would truly mark a step-change in the contemporary UK threat. activity. Text 61016 or call 0800 40 50 40 to help keep the UK’s rail network safe. DIRECTION FROM IN THE RARE EVENT OF INTERNATIONAL a firearms or weapons attack RUN HIDE TELL TERROR GROUPS RUN to a place of safety. This is a far better option than Run, Hide, Tell to surrender or negotiate. If there’s nowhere to go, then… HIDE It’s better to hide than to confront. Remember to turn your phone to silent and turn off vibrate. Barricade yourself in if you can. Then finally and only when it is safe to do so… Information and resources to stay safe if you are TELL the police by calling 999. caught up in a a firearms and weapons incident in the UK. Pool Re TERRORISM FREQUENCY Quarterly Report 04
02 Introduction 05 Q4/2017 A review of significant incidents 10 The ‘Virtual Caliphate’ 03 Is the IED making a comeback as the 08 Possible al Qaeda–Daesh merger 11 Destructive cyber terrorism: When, not if? Islamist terrorist weapon of choice? Q4/2017 A REVIEW OF SIGNIFICANT INCIDENTS Camilla Scrimgeour Analyst Frequency of global terrorism 226 Total number of attacks 43 Total number of countries Key: Europe 4 Latin America & the Caribbean 8 Middle East & North Africa 91 North America 3 Russia & CIS States 6 South Asia 60 South East Asia 7 Sub-Saharan Africa 47 Pool Re TERRORISM FREQUENCY Quarterly Report 05
02 Introduction 05 Q4/2017 A review of significant incidents 10 The ‘Virtual Caliphate’ 03 Is the IED making a comeback as the 08 Possible al Qaeda–Daesh merger 11 Destructive cyber terrorism: When, not if? Islamist terrorist weapon of choice? Q4/2017 A review of significant incidents Continued Severity of attacks There were 226 in the last quarter of 2017, causing at least 2,248 deaths and 2,546 injuries. The most lethal attack took place in Mogadishu, Somalia. There were four attacks in Europe, none of which took place in the United Kingdom. October November December 2017 2017 2017 1 October 14 Mogadishu, Somalia VBIED attacks Killed: 512 Injured: 300+ 3 November 24 Al Rawda Mosque, Egypt IED and Firearms attack Killed: 305 Injured: 120+ 2 October 31 New York City, 4 Fatalities USA December 11 Vehicle attack Port Authority Bus Killed: 8 Station, USA Injured: 12 IED attack Killed: 0 Injured: 3 Injuries Source: TRAC Terrorism Database Pool Re TERRORISM FREQUENCY Quarterly Report 06
02 Introduction 05 Q4/2017 A review of significant incidents 10 The ‘Virtual Caliphate’ 03 Is the IED making a comeback as the 08 Possible al Qaeda–Daesh merger 11 Destructive cyber terrorism: When, not if? Islamist terrorist weapon of choice? Attacks Plots 1. October 14 3. November 24 5. November 2017 Mogadishu, Somalia Al Rawda Mosque, Egypt Melbourne, Australia New Year’s Eve plot VBIED attacks IED and Firearms attack A 20-year-old man was arrested on suspicion of Killed: 512, injured: 300+ Killed: 305, injured: 120+ planning an attack in Melbourne on New Year’s Eve. The man was being monitored by police Two VBIEDs detonated in different areas of Approximately 30 terrorists carrying Daesh flags and had downloaded extremist media, training Mogadishu. The initial blast occurred when a surrounded the al Rawda Mosque in the Sinai manuals and attempted to acquire a firearm. truck carrying explosives detonated on a busy Pensinsula during Jumu’ah (Friday prayers). intersection near Government offices and hotels. They detonated at least one IED before opening Similar to the heightened threat environment A second device, allegedly a car bomb, fire, setting fire to nearby cars to block roads in the UK, Australian police have thwarted exploded shortly after, some distance from the and targeting responding ambulances with 14 terrorist plots in the past four years and initial explosion. No group claimed responsibility gunfire. The terrorists left before security six attacks have taken place. The threat level for the attack, but the Somali Government forces arrived. remains at ‘Probable’. blamed al Shabaab. The attack was the bloodiest in Egyptian history 6. December 5, 2017 Al Shabaab has previously targeted both hotels and represents a departure from methodologies United Kingdom and Government buildings and the attack was previously employed by terror groups operating Downing Street plot consistent with methodologies employed by the in the Sinai. No group has claimed responsibility group, although no previous attacks have been for the attack although Daesh is suspected to Two men, both British nationals, were charged as deadly. Media reports indicated that 400kg be responsible. Several other groups operating with terrorism offences over an alledged plot to of explosives, including both military-grade and in the Sinai issued condemnations of the attack. kill the Prime Minister in an attack using an IED homemade, were used in the truck bomb. This, and bladed weapons. The men had conducted and secondary effects (including the collapse The attack demonstrated the potential lethality reconnaissance, downloaded Islamist extremist of buildings and fire from the combustion of a of mixed methodology attacks in which terrorists material, recorded a pledge of allegiance to nearby tanker truck) likely contributed to the use firearms in combination with IEDs. However, Daesh, and delivered and collected a rucksack high number of casualties. An investigation into the acquisition of firearms by terrorist actors and bag to be fitted with an IED. the source of the explosives is ongoing; some in the UK remains unlikely, and extremists sources suggested that they were stolen from are more likely to use readily available vehicles Whilst an ambitious plot, the men were not AMISOM, the African Union peacekeeping force and bladed weapons, or attempt to construct in possession of explosives at the time of their deployed in Somalia. IEDs for attacks. arrest, indicating that MI5 and the police had a degree of control around the suspects. Extremist access to military-grade explosives 4. December 11 Politicians, other persons of authority and in the UK is highly unlikely. Large vehicle-borne Port Authority Bus Station, USA associated sites continue to be targeted IEDs such as those detonated in Somalia have by extremists. been used by the IRA in previous years. Ciaran IED attack Maxwell, who was jailed in 2017 for Northern Killed: 0, injured: 3 7. December 19, 2017 Ireland-related terrorism offences, acquired his United Kingdom cache of military-grade explosives through theft Three people were injured when a pipe bomb Christmas plot in his former position as a Royal Marine and had strapped to the body of 27-year-old Akayed official buildings listed as intended targets. Ullah partially detonated in an underground The total number of plots thwarted in the UK in However, this was not assessed to indicate the passageway between Port Authority Station and 2017 rose to 10 when police arrested four men start of a new campaign and the use of large Times Square Station. The attacker is originally in Sheffield and Chesterfield on suspicion of VBIEDs in the UK remains possible but unlikely. from Bangladesh and moved to the US seven being concerned in the commission, preparation years ago. He is reported to be a supporter of or instigation of acts of terrorism under Section 2. October 31 Daesh and was inspired by their online media 41 of the Terrorism Act 2000. Two men of Iraqi New York City, USA urging attacks during the Christmas period. origin have been charged. Vehicle attack A document submitted to court suggested Ullah The intended target was associated to the Killed: 8, injured: 12 constructed the pipe bomb using instructions Christmas festivities and recent extremist media found in an Islamist propaganda magazine posted online had called for attacks in the West A truck was driven intentionally along a cycle path available on the internet. The latest TRAC against such festive sites. The involvement of in Manhattan, hitting pedestrians and cyclists. Terrorism Threat & Mitigation Report highlighted armed police and the army during the arrests The driver left the vehicle and was shot and the link between methodology promoted in suggests the suspects were in possession of, arrested by police officers. 29-year-old Sayfullo Islamist media and attack methodology used or believed to have, weapons and explosives. Saipov, a legal US resident from Uzbekistan, in subsequent attacks. Although it has been has been charged with terrorism offences. claimed by some media outlets that this was It is notable that both plots disrupted in the UK a ‘failed’ attack, it will be considered a success in December involved the aspiration to build and The use of vehicles to kill or injure members to Islamist extremists as Ullah was successful use an IED. This appears to be a trend and of the public is now a common attack in building and detonating an explosive device motivation may have come from the success methodology and is consistent with previous undetected. Crowded places and Critical of the Manchester and Parsons Green attacks. attacks conducted by Islamist extremists, National Infrastructure remain desired targets This edition of the Terrorism Frequency Report including twice in the UK in 2017. The threat for Islamist extremists, especially during busy analyses the long-standing threat of IEDs and posed by the increased use of this methodology periods such as holidays and rush hour. the implications for the UK. by terrorists was evident in the police response in the UK, and the West more widely, during the Christmas and New Year festivities. Barriers were erected around Christmas markets and new ‘Talon’ nets were rolled out by police in September with the ability to bring vehicles weighing up to 17 tonnes to a stop. Links to sources of further information: Terrorism Threat & Mitigation Report January to July 2017 Terrorism in the United Kingdom and Europe Pool Re TERRORISM FREQUENCY Quarterly Report 07
02 Introduction 05 Q4/2017 A review of significant incidents 10 The ‘Virtual Caliphate’ 03 Is the IED making a comeback as the 08 Possible al Qaeda–Daesh merger 11 Destructive cyber terrorism: When, not if? Islamist terrorist weapon of choice? POSSIBLE AL QAEDA AND DAESH MERGER As predicted, Daesh’s territorial holdings in Iraq and Syria and elsewhere across the globe have been significantly eroded and the impending collapse of the physical so-called Caliphate has raised hopes for the group’s end. Eden Stewart Analyst AL QAEDA DAESH TRAC insight: The likely result of a merger is that the Daesh brand would endure, at least in the short term, although in a much- diminished state, and AQ would re-emerge as the preeminent jihadist organisation. Pool Re TERRORISM FREQUENCY Quarterly Report 08
02 Introduction 05 Q4/2017 A review of significant incidents 10 The ‘Virtual Caliphate’ 03 Is the IED making a comeback as the 08 Possible al Qaeda–Daesh merger 11 Destructive cyber terrorism: When, not if? Islamist terrorist weapon of choice? However, elements of Daesh and its ideology will very likely persist. The group, scattered and The death of either Zawahiri or Baghdadi would remove a significant obstacle to a merger, as THE DEATH OF operating largely without central command and control, is returning to the insurgency model neither would likely accept the loss of prestige that publicly ceding authority to the other would EITHER ZAWAHIRI from which it evolved. It is unlikely to be eradicated from Iraq and Syria entirely. It is entail. Despite Russian claims, it is probable that Baghdadi remains alive and in hiding in Iraq or OR BAGHDADI possible that Daesh or factions within it will remerge with AQ. This could involve a formal Syria. If he were to die, his successor would likely announce Baghdadi’s death in an attempt WOULD REMOVE merger precipitated by the organisations’ respective leaders, or a hostile takeover of one to secure their own claim as Caliph and maintain cohesion across Daesh’s various factions. A SIGNIFICANT by the other. Such a merger would likely see a successor organisation strengthened and intent Regional commanders have taken oaths of loyalty (Bay’at) to Baghdadi. These personal OBSTACLE TO on conducting sophisticated attacks against the West to (re)establish its position at the forefront bonds would be dissolved in the event of his death, leaving his subordinates free to realign A MERGER of the global jihadist movement. This could lead themselves with the now-ascendant AQ. to an increase in both the severity and frequency of plots against the UK encouraged or directed Therefore, as long as Baghdadi remains alive, from overseas. Despite this, the principal threat the Daesh brand is likely to endure, albeit in to the UK would likely continue to emanate from a much-diminished state. His death would lone actors and small groups inspired by probably precipitate either the annexation of extremist ideology to commit attacks employing some Daesh assets by AQ resulting in a rump a range of methodologies. Caliphate led by Baghdadi’s successor, or a formal merger instigated by Daesh’s new leader The split between Daesh and AQ in 2013 was to pre-empt a hostile takeover. In either driven by divergences in the groups’ doctrines scenario, AQ would re-emerge as the and tactics, particularly Daesh’s escalating preeminent jihadist terror group. brutality and disputes over the establishment of the so-called Caliphate in Iraq and Syria. Perhaps, most significantly, there was personal Conclusion enmity between the groups’ respective leaders, Baghdadi’s death would further enhance al Baghdadi and al Zawahiri. Despite this, the domestic threat, providing motivation ideological commonalities between AQ and for revenge attacks in the UK, whether Daesh now are far greater than their differences, specifically claimed in his name or not. and the effective destruction of the physical An AQ-led successor organisation would so-called Caliphate in Iraq and Syria has nullified benefit from greater economies of scale and that major area of strategic contention, increasing the deduplication of efforts with its former the likelihood of a merger of the groups. AQ is rival, and may experience a boon in almost certainly alert to the opportunity for fundraising and recruitment. This would expansion at Daesh’s expense, and its recent likely see the group pursue more aggressive efforts to boost the profile of Hamza bin Laden, strategies in ungoverned spaces around the Osama’s son, may be part of a calculated strategy world, adding to the ‘Virtual Caliphate’ to promote a future leader more likely to win the concept. An increase in the number of safe allegiance of disaffected Daesh members. bases would likely see a corresponding increase in the volume and sophistication of AN attacks against the West planned from those bases. AQ continues to display the intent to AL QAEDA/DAESH commit ‘spectacular’ attacks, typically multiple coordinated attacks involving MERGER FURTHER explosives and targeting aviation or other transport infrastructure. It is likely that the DIVERSIFIES THE group would dedicate significant resources to successfully executing such an attack to UK THREAT reaffirm its leadership of the global jihadist movement. However, MI5 and police have LANDSCAPE proved adept at disrupting transnational plots, and the UK represents a hard target for overseas plots relative to other European countries. Consequently, the principal threat to the UK, even in the event of a AQ-Daesh merger, would remain self-radicalised British residents with no direct connection to either group seeking to commit attacks on the UK mainland. Pool Re TERRORISM FREQUENCY Quarterly Report 09
02 Introduction 05 Q4/2017 A review of significant incidents 10 The ‘Virtual Caliphate’ 03 Is the IED making a comeback as the 08 Possible al Qaeda–Daesh merger 11 Destructive cyber terrorism: When, not if? Islamist terrorist weapon of choice? THE ‘do-it-yourself’ guides encouraging supporters typically motivated by jihadi ideology in general, unable to travel to the Middle East to conduct rather than loyalty to a specific group. Therefore, low sophistication (and therefore harder to the collapse of Daesh’s physical so-called disrupt) attacks in their home countries. Caliphate may do little to diminish the ability ‘VIRTUAL Illustrative of the way that terror groups adopt each other’s successful policies, this type of material was first distributed by AQ in its Inspire of jihadist groups to inspire attacks against the West. This development also represents a de facto merger of AQ and Daesh online, insofar as CALIPHATE’ magazine from 2010. However, the their messaging is largely indistinguishable and methodologies proposed to aspiring attackers shares the same objective of instigating attacks were often more complex, and despite several by third-party actors. notable successes, AQ was not able to instigate nearly as many attacks as Daesh subsequently A bigger threat than the physical Islamic State? would. In part, this was likely due to the more Conclusion easily executed methodologies suggested by This ‘Virtual Caliphate’ arguably has far Eden Stewart Daesh, but perhaps more significantly, Daesh’s greater implications for the UK’s security Analyst call to action was delivered alongside a far more than overseas developments. British extensive propaganda campaign centred on the residents will very likely continue to be With the impending destruction of Daesh’s narrative of the physical so-called Caliphate. radicalised by extremist content online and physical so-called Caliphate in Iraq and Additionally, the string of successful attacks likely will use available instructional materials to Syria, the future trajectory of the galvanised other supporters to plot their own. This plan attacks employing a range of organisation is unclear. However, some dynamic was a primary driver of the step-change methodologies. Inevitably, some will commentators have warned that the group in threat that the UK witnessed in 2017. succeed and businesses should therefore will retain global influence after its territorial implement mitigatory measures to protect collapse by evolving into a ‘Virtual Caliphate’. The quality and quantity of Daesh’s propaganda their premises and employees from such declined markedly as the group lost territory and an eventuality. Broadly, the term refers to Daesh’s use of key individuals were killed. Cyber operations information technology to maintain its relevance mounted by coalition forces also degraded the in the Jihadist movement by building support group’s media capabilities and Daesh’s ability and directing or inspiring attacks. It also denotes to exploit widely used social media platforms Links to sources of further information: an ideological and institutional coherence which decreased as service providers responded to unifies the group’s affiliates and supporters government pressure to restrict extremist’s use The police offer guidance and support across the disparate ungoverned spaces, both of their platforms. Despite this, 2017 saw a when dealing with potential extremist physical and digital, in which they operate. major increase in the number of ‘inspired’ media online. attacks against the UK. The difficulty of policing Advice can be read here and concerns Daesh has enjoyed considerable success in the internet, particularly encrypted chat services may be reported to the Government here. inciting sympathetic individuals with no physical and deep and dark web forums, means that contact with the group to commit attacks against counter-terrorist efforts are unable to the West. There have been 28 such attacks in significantly restrict access to extremist material Europe since Daesh first released its flagship online. Daesh continues to produce publication Dabiq (since rebranded as Rumiyah) in considerable amounts of lower quality content, July 2014. Some of the attackers have reportedly while AQ has mimicked their rivals by producing been guided via encrypted messaging services more accessible material focusing on instigation by Daesh handlers in Syria and Iraq. However, and instruction. Snapshot in most cases, the attackers are believed to have SOME OF THE self-radicalised by viewing extremist content It is possible that the collapse of Daesh’s online. This illustrates the power of Daesh’s physical so-called Caliphate will sufficiently ATTACKERS IN propaganda to cultivate support and ultimately undermine the group’s credibility such that EUROPE WERE mobilise individuals to execute attacks. interest in and supply of propaganda and REPORTEDLY GUIDED instructional material will decrease significantly. Daesh’s media output has also disseminated However, as demonstrated by AQ, the loss of VIA ENCRYPTED instructional information aimed at increasing a safe haven need not be fatal to jihadist groups. MESSAGING the efficacy of the attacks conducted by these Furthermore, the propaganda efforts of Daesh SERVICES BY DAESH individuals; the group has published a series of (and AQ to a lesser extent) have succeeded in creating a corpus of extremist literature which HANDLERS IN SYRIA is supported by an active community of closed AND IRAQ. chatrooms and forums. Together, these constitute an online jihadi ecosystem which exists to cultivate support for Islamist extremism and incite sympathisers to commit attacks in their home countries. In this regard, the ‘Virtual Caliphate’ is already a reality. Moreover, while content providers in this ecosystem may be affiliated with specific organisations like Daesh or AQ, their audience is largely brand agnostic. Attackers mobilised by extremist material are Daesh has also distributed substantial quantities of instructional materials which aim to increase the efficacy of the attacks conducted by these individuals. Pool Re TERRORISM FREQUENCY Quarterly Report 10
02 Introduction 05 Q4/2017 A review of significant incidents 10 The ‘Virtual Caliphate’ 03 Is the IED making a comeback as the 08 Possible al Qaeda–Daesh merger 11 Destructive cyber terrorism: When, not if? Islamist terrorist weapon of choice? DESTRUCTIVE In December, a new form of malicious software which targeted industrial safety systems was CYBER TERRORISM: observed, further illustrating the prevalence of the threat. WHEN, NOT IF? Guest writer: Conrad Prince The threat we face from cyber attacks We should not be surprised at this – terrorist Former Deputy Head of GCHQ is growing and real. The UK Government movements include plenty of young people who concluded that it was one of the top four are instinctively tech-savvy. It is natural that they national security risks as far back as 2010. use social media and the Internet to the full. And A little over a year ago, the Government then there are those extremists with a more published its second National Cyber specific technology background and particular Security Strategy, setting out an ambitious cyber skills they can bring to bear. and wide-ranging agenda, backed by £1.9 billion of transformational investment As Daesh lose more and more control of physical and the creation of the National Cyber territory it seems likely that they will increasingly Security Centre. focus their efforts on cyber space. The cyber conflict with Daesh has a long way to run yet. Cyber crime is rising year on year, including cyber-enabled fraud and ransomware attacks. So far we have seen examples of terrorist And there is plenty of evidence of nation states groups conducting ‘cyber vandalism’ – defacing using cyber as a means to steal intellectual websites. They have possibly also experimented property, conduct espionage and seek to with denial of service attacks (where target influence political processes. machines or networks are overwhelmed by traffic from other devices, rendering them unusable). Alongside this is the growing recognition that And there is plenty of evidence of a stated intent non-terrorist actors have used cyber attacks to to use cyber more aggressively. But on the face cause disruption and destruction to real world of it terrorist groups currently lack the capacity operational technology. The growing roll call to deliver a serious destructive attack. includes Stuxnet in 2009 that disrupted Iranian nuclear centrifuges, the cyber attack in 2012 A couple of observations. The tools needed that destroyed 30,000 computers belonging to for cyber attacks are being increasingly Saudi oil company Aramco, the 2014 attack on commoditised – available for purchase or hire a German steel mill’s control system, and the on the dark web from criminals happy to provide attacks on Ukrainian power stations in 2015 and their services to the highest bidder. Terrorists 2016, one of which left 225,000 users without are as capable as anyone of purchasing these power. In December, a new form of malicious capabilities. So the ability to deliver destructive software which targeted industrial safety cyber attacks, particularly at the cruder end of the systems was observed, further illustrating the spectrum, will increasingly be within reach of those prevalence of the threat. Industrial systems are with the ability to pay. And even crude attacks not the only target; cyber attacks on connected have the potential to create real world impact. devices such as building heating plants or transport fuel management systems could Furthermore, terrorists may be able to exploit potentially directly cause fire or explosion. sophisticated tools and techniques developed by nation states, should they become available Destructive cyber attacks are a reality and on the open market as a result of an we should assume that nation states across unauthorised disclosure. the world are investing serious resource in developing capabilities to launch them. In addition, terrorists, as much as nation states, Today’s inter-connected world and the rapid can exploit the significant advantages of having development of the Internet of Things, smart someone on the inside. In 2011 Rajib Karim, cities, autonomous vehicles and the like, a British Airways IT worker, was jailed for 30 create significantly increased opportunities years for plotting to blow up an aircraft. Karim In 2011 Rajib Karim, a for attackers. But to be successful generally had expressed the intention amongst other British Airways IT worker, requires a level of analysis, preparation, and things of looking into how to crash BA’s IT was jailed for thirty years sophisticated technical skill and capability that systems. A well-placed insider can go a long for plotting to blow up has, to date, been the preserve of nation states way to simplifying the work involved in delivering an aircraft. Karim had alone. What is the likelihood of terrorist a destructive cyber attack. expressed the intention organisations having the capability and intent amongst other things to launch such attacks? of looking into how to Conclusion crash BA’s IT systems. The first point to bear in mind is that terrorists, So there can be no doubt that terrorist A well-placed insider in particular Daesh, are highly effective in their groups, including Daesh, have the intent can go a long way to exploitation of the Internet. We know to our cost to use the Internet to achieve aggressive, simplifying the work their sophistication in using social media for destructive effect. Their capability to do involved in delivering a propaganda. They use encrypted apps for so is limited at present, but all the trends destructive cyber attack. operational command and control, and use indicate that their ability to deliver such the internet extensively to gather information attacks will increase over time. We need to to help in attack preparation. AQ started this be prepared. In the light of this increasing trend and Daesh have placed it at the core threat, Pool Re’s decision to extend its of their operations. coverage to include cyber terrorism is timely, highly relevant, and will improve the resilience of UK businesses to destructive Pool Re cyber attacks by terrorist actors. TERRORISM FREQUENCY Quarterly Report 11
02 Introduction 05 Q4/2017 A review of significant incidents 10 The ‘Virtual Caliphate’ 03 Is the IED making a comeback as the 08 Possible al Qaeda–Daesh merger 11 Destructive cyber terrorism: When, not if? Islamist terrorist weapon of choice? About us Q4/2017 Region of attacks (Q4 2017) Pool Re is the UK’s terrorism reinsurance pool, providing effective protection for the UK economy SIGNIFICANT INCIDENTS 100 and underwriting over £2 trillion of exposure to FACTS SNAPSHOT terrorism risk in commercial property across the 75 UK mainland. Through its Terrorism Research and Analysis Centre (TRAC), Pool Re aims to improve the risk awareness of current and 50 emerging terrorism perils for Members and other key stakeholders by highlighting the availability 25 of terrorism cover for all UK mainland Commercial Insurance customers. 0 Europe Latin America and the Caribbean Middle East and North Africa North America Russia and CIS States South Asia South East Asia Sub-Saharan Africa About this Terrorism Frequency Report The Terrorism Frequency report provides an overview of significant acts of terrorism within the previous quarter as well as identifying key trends and themes that we believe are relevant The frequency of attacks was greatest in the to the terrorism (re)insurance market. Our Middle East and North Africa in the last quarter methodology is based on the TRAC Terrorism of 2017, attributable mostly to Islamist extremism. Database, analysis of the wide range of publicly available open source material and collaboration Global attack methodology (Q4 2017) Global attack target types (Q4 2017) with subject matter experts. 80 120 Disclaimer 100 This document has been prepared by Pool 60 Reinsurance Company Limited (Pool Re). While 80 this information has been prepared in good faith, no representation or warranty, express or 40 60 implied, is or will be made and no responsibility 40 or liability is or will be accepted by Pool Re, or 20 by any of its respective directors, officers, 20 employees or agents in relation to the accuracy or completeness of this document and any such 0 0 Bladed CBRN Firearms IED PBIED VBIED Vehicle CNI Crowded places Police Military Government Property Symbolic Civilian liability is expressly disclaimed. In particular, but without limitation, no representation or warranty is given as to the reasonableness of future suggestions contained IEDs were the most commonly used weapon Police, military and government targets remain in this document. in attacks, followed by firearms. the most frequently attacked sector, followed by civilians in crowded places. Pool Re is a company limited by guarantee and registered in England and Wales under NEXT STEPS: company no. 02798901 having its registered office at Hanover House, 14 Hanover Square, Terrorism Threat London W1S 1HP. & Mitigation Report January – July 2017 © Pool Reinsurance Company Limited 2017 9.3 MB Terrorism Threat & Mitigation Report January – July 2017 TMR–2–17 Discover more Cyber Terrorism: Assessment Go online to discover more about us, Cambridge Centre for Risk Studies Cambridge Risk Framework of the Threat to Insurance Cyber Terrorism Insurance Futures 2017 CYBER TERRORISM: ASSESSMENT OF our work, methodology and to download THE THREAT TO INSURANCE Joint report from Pool Re our latest publications. and Cambridge Centre for Risk Studies. 2.7 MB Email Post Incident Report TRAC@poolre.co.uk Pool Re Terrorism Research and Analysis Centre Three Attacks in Three Months: Post Incident Report: Westminster, Manchester and Three Attacks in Three Months – Westminster, Manchester and London Bridge Call Westminster Attack 22 March 2017 • Aged 52 years old • ‘Lone actor’ • No network London Bridge. +44 (0)20 7337 7170 • No links overseas 0.9 MB British born Use of vehicle and perpetrators bladed weapon Lone attackers Targeting of iconic sites • Islamist extremism • Known to police and MI5 • Crowded places • Use of internet and ideology Manchester • Methodology promoted online London Bridge Attack • Timed to maximise casualties Attack 22 May 2017 03 June 2017 • Complexity and sophistication • Three attackers shows • Use of home made explosives level of complexity and • Links to overseas a wider network • Network of associates Linkedin 10 weeks 35 deaths 217 injuries 5 terrorists 46 arrests www.linkedin.com/company/1795229 Pool Re Terrorism Research and Analysis Centre Terrorism Threat Twitter & Mitigation Report @poolreinsurance August – December 2016 6.4 MB Address Terrorism Threat Pool Reinsurance Company Limited & Mitigation Report August – December 2016 Equitable House TMR–1–17 47 King William Street London EC4R 9AF
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