Call for action to stop Islamic State ‘funding UK plots with student loans’

Security experts today called for new controls over student and payday loans as they warned that it is “frighteningly easy” for Islamic State supporters in Britain to use the money to fund terror attacks here.

The demand comes in a report on terrorist financing by Royal United Services Institute, which says the loans are “ideal for the limited costs associated with lone actor or small cell attacks”.

The report adds that several cases have already been uncovered in which such loans have been used to finance terror plots in the UK.

Despite this, it warns that existing powers are inadequate for dealing with “low budget terror” in Britain and focus too heavily on stopping the flow of cash to Syria and Iraq.