Thank you, Mr. Chair, members of the committee. Hello, and thank you for the opportunity to appear before you to discuss the funding mechanisms of ideologically motivated violent extremist groups.
I am the co-founder and executive director of The Global Disinformation Index, a non-profit focused on catalyzing change in the technology industry to disrupt the business model of online disinformation.
In 2020, my colleague, Ben Decker, and our team at the GDI collaborated with the Institute for Strategic Dialogue to conduct a series of studies entitled “Bankrolling Bigotry” to examine the funding mechanisms of a selection of hate groups in North America and Europe. Many of these groups are the same ones associated with recent acts of ideologically motivated violent extremism in recent years.
I appear before you today to discuss what we learned about how the technology and payments companies enable groups like those that participate in these events to operate.
These groups leverage the Internet as a primary means of disseminating their toxic ideologies and soliciting funds. One only needs to search Amazon or Etsy or Teespring or Redbubble to uncover shirts, hats, mugs, books and other paraphernalia that both monetize and further popularize the ideologically motivated violent extremist threat.
Last year, at least 24 individuals indicted for their role in the January 6 insurrection in the United States, including eight members of the Proud Boys, a group the Canadian government has designated as a terrorist entity, used crowdfunding site GiveSendGo to raise nearly a quarter of a million dollars in donations. It's not just about the money. Merchandise like t-shirts, which I just mentioned, act as team jerseys to help these groups recruit new members and foment further hatred towards their targets.
In North America we analyzed the digital footprints of 73 groups across 60 websites and 225 social media accounts, and their use of 54 different online fundraising mechanisms, including 47 payment platforms, five different cryptocurrencies, and we ultimately found a 191 instances of hate groups using online fundraising services to support their activities. The funding mechanisms included both primary platforms like Amazon, intermediary platforms such as Stripe or Shopify, crowdfunding sites like GoFundMe, payment facilitators like PayPal, monetized content streaming services like YouTube, Super Chats, and cryptocurrency such as Bitcoin.
All of these payment mechanisms were linked to websites or social media accounts on Facebook, Instagram, YouTube, Telegram, LinkedIn, Pinterest, Gab, BitChute, and others.
The sheer number of companies I just mentioned is the first clue to the scale and scope of the problem. This is not an issue of any one individual company, but rather a systemic problem of hate and bigotry exploiting an entire industry, and even sometimes government policy, to raise funds, peddle extremist ideologies and commit acts of violence.
We did a similar analysis of hate crimes groups in Europe with a specific focus on Germany, ahead of their recent federal elections, and found similar results.
A number of our conclusions stood out in performing this work. For starters, over half of the platforms we identified already had policies to explicitly prohibit hate and extremism, but those policies simply went unenforced. In the United States we found a large fraction of the groups we studied had approved tax-exempt status. In fact, a full 100% of anti-Muslim groups, 75% of anti-immigrant groups, 70% of anti-LGBTQ groups, and a third of the militias that we identified, including the Oath Keepers, had U.S. 501(c)(3) or 501(c)(4) tax-exempt status, giving them access to a whole spectrum of charity fundraising tools from Facebook donations to AmazonSmile, to the point that the most common fundraising platform we identified across all of our data was actually Charity Navigator's The Giving Basket function.
Simply put, private industry must step up and do more. Since the publication of our first report last October, we've documented at least 17 actions taken by platforms against the North American groups we enumerated. For example, four of the six payment mechanisms routing funds to the Oath Keepers have been blocked. Amazon has even removed them from AmazonSmile. However, 17 actions out of the nearly 200 instances we observed speaks to the rampant way the problem has been allowed to persist.
In fact, after most platforms were removed, the Oath Keepers payment facilitator, RallyPay, continued to service the group's fundraising needs, even as the group's leader was indicted in the United States for seditious conspiracy.
More must be done. Industry-wide standards must be set, and enforcement across both public and private sectors must be stepped up. Platforms must be held to measurable commitments, and transparency regimens, and subjected to third-party scrutiny, to keep them accountable.
Members of the committee, I thank you for your time today, and I welcome your questions.