The Islamic State (IS) is shifting to e-terrorism after being degraded in Syria and Iraq. Deep structural problems in the MENA and rising Islamophobia in the West are continuing to feed extremism worldwide. Innovative IS meta-narratives are capturing the imagination of our youth who are beginning to embrace the idea of a “United Cyber Caliphate.” In order to inspire their commitment IS is already asking young people to donate their time, expertise and money. IS has the ability to send its message unimpeded in cyberspace, where it has global access to anyone who owns a computer or a smart phone. Savvy e-terrorists are embracing the growing number of apps and websites with encryption, making it difficult for intelligence agencies to disrupt their propaganda and cyber operations. The UCC has recently been reinforced by cyber security breaches which are allowing them the ability to acquire destructive cyber weapons. Defeating IS’s e-terrorism will require even more vigilant and inventive responses than ever before.