TERRORISM FREQUENCY 1/2018 - Pool Re

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TERRORISM FREQUENCY 1/2018 - Pool Re
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
TERRORISM FREQUENCY 1/2018 - Pool Re
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
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© Pool Reinsurance Company Limited 2017                                                                                                                                                                                                                                          9.3 MB
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                                                                                                                             Cyber Terrorism Insurance Futures 2017

                                                                                                                             CYBER TERRORISM:
                                                                                                                             ASSESSMENT OF

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                                                     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

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                                                     Address                                                              Terrorism Threat

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