ISIS' finances are taking a serious hit, and it's hurting morale inside the terror group

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The US Blew Up a Huge Stash of ISIS' Cash

As a US-led coalition hammers ISIS' oil infrastructure and other financial institutions in the Middle East, the terror group has cut salaries and infighting has broken out within the rank and file and senior leadership.

Reports of infighting within ISIS (also known as the Islamic State, ISIL, or Daesh) aren't new, but increased financial and territorial losses might be worsening the stress fractures that are splintering the group.

The Washington Post reported on Monday that ISIS is now facing an "unprecedented cash crunch" as the coalition ramps up strikes on its sources of wealth. Strikes have been hitting oil refineries and tankers as well as banks and buildings that hold hard cash.

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ISIS salaries are taking a hit as a result of the financial losses. Some units reportedly aren't being paid at all, and some fighters' salaries have been cut in half, according to The Post.

The salary cuts specifically appear "to have significantly hit the organization's morale," according to Charles Lister, a resident fellow at the Middle East Institute.

Learn more about the history of ISIS:

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ISIS' finances are taking a serious hit, and it's hurting morale inside the terror group
FILE - In this Monday, April 19, 2010 file photo, Iraq's Prime Minister Nouri al-Maliki holds a paper displaying photographs of a man the Iraqi government claims to be al-Qaida leader Abu Omar al-Baghdadi at a news conference in Baghdad, Iraq. U.S. and Iraqi forces killed the two top al-Qaida in Iraq leaders on April 18, 2010, allowing Abu Bakr al-Baghdadi to become the leader of a terror group weakened by a concerted campaign aimed at ending a Sunni insurgency in the country.(AP Photo/Hadi Mizban, File)
FILE - In this Feb. 21, 2009 file photo, guards stand at the entrance of a renovated Abu Ghraib prison, now renamed Baghdad Central Prison and run by Iraqis, in Baghdad, Iraq. A military-style assault by al-Qaida leader Abu Bakr al-Baghdadi’s fighters on two Baghdad-area prisons in July, 2013 freed more than 500 inmates.(AP Photo / Karim Kadim, File)
FILE - In this Wednesday April 21, 2010 file photo, an Iraqi military helicopter flies over the site of a joint U.S.-Iraqi raid that reportedly killed Abu Omar al-Baghdadi and Abu Ayyub al-Masri, two top-ranking al-Qaida figures, about six miles (10 kilometers) southwest of Tikrit. U.S. and Iraqi forces killed the two top al-Qaida in Iraq leaders on April 18, 2010, allowing Abu Bakr al-Baghdadi to become the leader of a terror group weakened by a concerted campaign aimed at ending a Sunni insurgency in the country.(AP Photo/Karim Kadim, File)
FILE - In this Dec. 10, 2010 photo, pictures of slain Iraqi Christians are displayed during Mass at Our Lady of Salvation church in Baghdad, Iraq. Abu Bakr al-Baghdadi’s al-Qaida militants attacked the church on Oct. 31 during Sunday night mass, killing 58 people in the deadliest assault targeting Christians since the 2003 U.S.-led invasion there. The militants reportedly demand the release of Muslim women they claim were held by Egypt’s Coptic Christian church.(AP Photo/Hadi Mizban, File)
FILE - In this Wednesday, Aug. 1, 2012 file photo, Iraqis inspect the aftermath a day after a car bomb attack in a shopping area in Karradah, Baghdad, Iraq. In his first purported online message on July 21, 2012, al-Qaida in Iraq leader Abu Bakr al-Baghdadi promised to regain lost ground in Iraq and calls on militants to “chase and liquidate the judges, the investigators and the guards.” Within days, his group begins a campaign of attacks, car bombings and other assaults killing hundreds.(AP Photo/Khalid Mohammed, File)
FILE - In this April 23, 2013 file photo, a suspected Yemeni al-Qaida militant, center, holds a banner as he stands behind bars during a court hearing in state security court in Sanaa, Yemen. In a competition with the Islamic State group for recruits and prestige across the Middle East, al-Qaida has sought to distinguish itself from its rival's bloodthirstiness, taking an approach that in jihadi circles would be considered pragmatic. (AP Photo/Hani Mohammed, File)
A sign on the northern road exiting the town of Gao, Northern Mali, Wednesday Jan. 30, 2013, reads "welcome to the islamic state of Gao". Islamist extremists fled the city Saturday after French, Chadian and Nigerien troops arrived, ending 10 months of radical islamic control over the city.(AP Photo/Jerome Delay)
FILE - In this Sunday, March 30, 2014, file photo, Islamic State group militants hold up their flag as they patrol in a commandeered Iraqi military vehicle in Fallujah, 40 miles (65 kilometers) west of Baghdad, Iraq. Abu Bakr al-Baghdadi’s forces swept into Ramadi and Fallujah in Iraq’s Anbar province, which Iraqi security forces had abandoned weeks earlier. That came after security forces killed demonstrators during a Sunni protest, effectively turning the unrest into an uprising.(AP Photo, File)
FILE - In this June 23, 2014, file photo, fighters from the Islamic State group parade in a commandeered Iraqi security forces armored vehicle down a main road at the northern city of Mosul, Iraq. Abu Bakr Al-Baghdadi’s fighters took over Iraq's second-largest city of Mosul in June, 2014, followed by Saddam Hussein's hometown of Tikrit and smaller communities in the Sunni heartland as government forces melt away.(AP Photo/File)
German Kreshnik B. waits for the beginning of his trial at a higher regional court in Frankfurt, Germany, Monday, Sept.15, 2014. He is accused of having been a member of the Islamic state group in Syria. He was arrested when he came back to Germany in December 2013. (AP Photo/Michael Probst)
FILE - In this Monday, June 16, 2014 file photo, demonstrators chant pro-Islamic State group slogans as they wave the group's flags in front of the provincial government headquarters in Mosul, 225 miles (360 kilometers) northwest of Baghdad, Iraq. The IS declaration of a "caliphate" in Iraq and Syria inspired a stream of thousands of foreign fighters to join it and earned it pledges of allegiance by individual militants around the region. (AP Photo, File)
FILE - In this Monday, Nov. 24, 2014, file photo, smoke billows behind an Islamic State group sign during clashes between militants from the Islamic State group and Iraqi security forces during a military operation to regain control of the town of Sadiyah, 60 miles (95 kilometers) north of Baghdad, Iraq in Diyala province, Iraq. In a competition with the Islamic State group for recruits and prestige across the Middle East, al-Qaida has sought to distinguish itself from its rival's bloodthirstiness, taking an approach that in jihadi circles would be considered pragmatic. (AP Photo, File)
A photograph on a television screen shown by Army Lt. Gen. William Mayville, Jr., Director of Operations J3, while he briefs the news media on operations in Syria, at the Pentagon in Arlington, Va., Tuesday, Sept. 23, 2014. (AP Photo/Cliff Owen)
This image provided by the Department of Defense shows a image that was shown by Army Lt. Gen. William Mayville, Jr., Director of Operations J3, during a briefing on operations in Syria, at the Pentagon in Washington on Tuesday, Sept. 23, 2014. (AP Photo/Department of Defense)
This image provided by the Department of Defense shows a image that was shown by Army Lt. Gen. William Mayville, Jr., Director of Operations J3, during a briefing on operations in Syria, at the Pentagon in Washington on Tuesday, Sept. 23, 2014. (AP Photo/Department of Defense)
FILE - In this Monday, Nov. 24, 2014 file photo, Iraqi army soldiers deploy in front of a court run by the Islamic State group after a military operation to regain control of the town of Sadiyah in Diyala province, 60 miles (95 kilometers) north of Baghdad, Iraq. (AP Photo, File)
Iraqi security forces prepare to attack Islamic State extremist positions in central Tikrit, 130 kilometers (80 miles) north of Baghdad, Iraq, Sunday, March 29, 2015. (AP Photo/Khalid Mohammed)
Black flags used by the Islamic State group are seen over their combat positions in the Rashad Bridge, which connects the provinces of Salah al-Din and Kirkuk, 290 kilometers (180 miles) north of Baghdad, Iraq, Monday, Sept. 29, 2014. (AP Photo/Hadi Mizban)
Syrian Kurdish fighter Delkhwaz Sheikh Ahmad, 22, checks a picture on his mobile showing Islamic State group fighters killed in fighting with Syrian Kurdish fighters, as he prepares to leave for Kobani, Syria, to rejoin the fighting, at his brother's house in Suruc, on the Turkey-Syria border, Friday, Oct. 17, 2014. The father of two is a member of the People’s Protection Units, also known as YPG and is fighting against militants of the Islamic State group in Kobani, Syria. Every few weeks, he takes a couple of days to cross the border into Turkey to visit his family that had evacuated. Kobani, also known as Ayn Arab, and its surrounding areas, has been under assault by extremists of the Islamic State group since mid-September and is being defended by Kurdish fighters. (AP Photo/Lefteris Pitarakis)
FILE - In this Aug. 10, 2014 file photo, an aircraft lands after missions targeting the Islamic State group in Iraq from the deck of the U.S. Navy aircraft carrier USS George H.W. Bush in the Persian Gulf. Combined U.S.-Arab airstrikes at the heart of the Islamic State group's military strongholds in Syria achieved their strategic aim of showing the extremists that their savage attacks will not go unanswered, the top American military officer said Tuesday, Sept. 23, 2014. (AP Photo/Hasan Jamali, File)
In this image made from video broadcast on Egyptian state television on Monday, Feb. 16, 2015, a fighter jet leaves the hangar in preparation to launch airstrikes against Islamic State targets in Libya after the extremist group released a grisly video showing the beheading of several Egyptian Coptic Christians it had held hostage for weeks. (AP Photo/Egyptian State Television via AP video)
In this image released by the Egyptian Presidency in the early hours of Monday, Feb. 16, 2015, President Abdel-Fattah el-Sissi makes a statement after militants in Libya affiliated with the Islamic State group released a grisly video showing the beheading of several Egyptian Coptic Christians it had held hostage for weeks. Egypt said Monday it has launched airstrikes against Islamic State targets in Libya following the release of the video, marking the first time Cairo has publicly acknowledged taking military action in neighboring Libya, where extremist groups seen as a threat to both countries have taken root in recent years. (AP Photo/Egyptian Presidency)
A man is comforted by others as he mourns over Egyptian Coptic Christians who were captured in Libya and killed by militants affiliated with the Islamic State group, outside of the Virgin Mary church in the village of el-Aour, near Minya, 220 kilometers (135 miles) south of Cairo, Egypt, Monday, Feb. 16, 2015. Egyptian warplanes struck Islamic State targets in Libya on Monday in swift retribution for the extremists' beheading of a group of Egyptian Christian hostages on a beach, shown in a grisly online video released hours earlier. (AP Photo/Hassan Ammar)
Iraqi security forces participate in a drill as U.S. forces train them in Taji, north of Baghdad, Iraq, Saturday, March 21, 2015. U.S. military officials have said a coordinated military mission to retake Mosul, Iraq's second largest city held by the Islamic State group, will likely begin in April or May and involve up to 25,000 Iraqi troops. But the Americans have cautioned that if the Iraqis are not ready, the offensive could be delayed. Iraqi officials have backed away from setting a timeline. (AP Photo/Karim Kadim)
Iraqi security forces participate in a drill as U.S. forces help train them in Taji, north of Baghdad, Iraq, Saturday, March 21, 2015. U.S. military officials have said a coordinated military mission to retake Mosul, Iraq's second largest city held by the Islamic State group, will likely begin in April or May and involve up to 25,000 Iraqi troops. But the Americans have cautioned that if the Iraqis are not ready, the offensive could be delayed. Iraqi officials have backed away from setting a timeline. (AP Photo/Karim Kadim)
A bombs, seen top left, falls on an Islamic State position in eastern Kobani, during an airstrike by the US led coalition, seen from a hilltop outside Suruc, on the Turkey-Syria border Saturday, Nov. 8, 2014. Kobani, also known as Ayn Arab, and its surrounding areas, has been under assault by extremists of the Islamic State group since mid-September and is being defended by Kurdish fighters. (AP Photo/Vadim Ghirda)
This picture released late Thursday, Aug. 20, 2015, by an Islamic State militant-affiliated website, shows a bulldozer, background, of the Islamic State militants destroying the Saint Eliane Monastery near the town of Qaryatain which IS captured in early August, in Homs province, Syria. A priest and activists say the Islamic State group has demolished an ancient monastery in central Syria. A Christian clergyman told The Associated Press in Damascus that IS militants also wrecked a church inside the monastery that dates back to the first Christian centuries. The priest, who spoke Friday on condition of anonymity for fear of reprisals, said the monastery included an Assyrian Catholic church. (Islamic State militant website via AP)
Mourners carry the coffins of victims of Saturday's Ankara bombing attacks, during a funeral in Istanbul, Monday, Oct. 12, 2015. Turkish investigators are close to identifying one of the suicide bombers in Turkey's deadliest attacks in years, Prime Minister Ahmet Davutoglu said Monday, adding that the Islamic State group was the "Number one priority" of the investigation. (AP Photo/Lefteris Pitarakis)
Armoured police vehicles patrol as they block a road leading to the site of armed clashes with militants in Diyarbakir, southeastern Turkey, Monday, Oct. 26, 2015. Police raided a house used by a suspected cell of the Islamic State group triggering a clash that killed up to seven militants and two policemen, Turkish media reports said. It was not immediately clear if the operation was linked to suicide bombings of a peace rally in the capital Ankara earlier this month that killed 102 people. (AP Photo/Mahmut Bozarslan)
From left, German Chancellor Angela Merkel, French president Francois Hollande and Paris Mayor Anne Hidalgo hold a white rose as they pay their respects to the victims of the attacks of the 13th November on the Place de la Republique prior to a meeting at the Elysee Palace, in Paris, Wednesday, Nov. 25, 2015. Merkel's visit to Paris is part of president Hollande's diplomatic offensive to get the international community to bolster the campaign against the Islamic State militants. (Etienne Laurent, Pool Photo via AP)
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"There are more and more frequent reports ... of infighting, armed clashes breaking out in the middle of the night in places like Raqqa between rival factions," Lister said Friday during a panel discussion in Washington, DC, referring to ISIS' de-facto capital in Syria.

"These are all indications of a significant drop in morale and a decrease in internal cohesion. And the cohesion argument was always something that analysts like myself always said was one of ISIS' strongest strengths."

Part of what has made ISIS' message so potent is the money that has come along with it — which is said to be a major factor in ISIS' recruiting success. For locals in war-torn Syria especially, ISIS has been able to offer more money than people could hope to make elsewhere.

But the salary cuts have strained the loyalties of fighters to the group.

Abu Sara, a 33-year-old engineer from Iraq, told The Post that ISIS members are becoming disillusioned.

"Their members are getting quite angry. Either they are not getting salaries or getting much less than they used to earn," Sara said. "All of the people I am in contact with want to escape, but they don't know how."

Some fighters "throw down their weapons and mingle with the civilians" in battle, according to Sara.

isis map

ISIS' financial problems are compounded by the group's territorial losses. Syrian forces recently retook the ancient city of Palmyra, while Iraqi forces are starting to move in toward Mosul, ISIS' stronghold in Iraq.

Territorial losses could hurt ISIS' recruiting efforts because they run counter to the group's central message of "remaining and expanding."

The losses also hit at ISIS' coffers because taxation and extortion make up a large share of ISIS' revenues. Unlike other terror groups that rely on outside donations from wealthy individuals, ISIS squeezes money from the local populations it controls.

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However, ISIS isn't likely to disappear anytime soon.

Hisham al-Hashimi, an Iraqi military strategist, told The Post that ISIS still controls significant oil resources across the territory it holds in Iraq and Syria.

Related: Victims of ISIS:

21 PHOTOS
ISIS, IS, ISIL beheading incidents, hostages
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ISIS' finances are taking a serious hit, and it's hurting morale inside the terror group
FILE - In this Friday, May 27, 2011, file photo, journalist James Foley poses for a photo during an interview with The Associated Press in Boston. A memorial service is scheduled Saturday, Oct. 18, 2014, in Foley's hometown of Rochester, N.H., on what would have been his 41st birthday. Foley was abducted in Syria on Thanksgiving Day 2012, and a video by Islamic State militants that purported to show his killing by the militant group was released Tuesday, Aug. 19, 2014. (AP Photo/Steven Senne, File)

A screen grab from a video posted to YouTube by ISIS that claims to show journalist James Foley, who was abducted in 2012 while covering the Syria civil war, being beheaded.

(YouTube)

AKKAR, LEBANON - SEPTEMBER 3: Lebaneses carry the funeral of Lebanese soldier Ali al-Sayyed (28) who kidnapped by Islamic State and the al-Nusra Front members and killed by Islamic State members, in Akkar, Lebanon on 3 September, 2014. (Photo by Mahmud Saleh/Anadolu Agency/Getty Images)
Execution of Steven Sotloff (1983 Â 2014) by Jihadi John of ISIS. In August 2013, Sotloff was kidnapped in Aleppo, Syria, and held captive by militants from the Islamic State of Iraq and the Levant. Jihadi John (Mohammed Emwazi, born August 1988) a British man who is thought to be the person seen in several videos produced by the Islamic extremist group ISIL showing the beheadings of a number of captives in 2014 and 2015. (Photo by Universal History Archive/UIG via Getty Images)
This Thursday, Sept. 4, 2014, a family of a missing Lebanese soldier who was kidnapped by Islamic State militants, sits on the ground as they block a street during a demonstration to demand action to secure the captives' release, in front the Lebanese government building, in downtown Beirut, Lebanon. The mother of Lebanese soldier Abbas Medlej, held captive by the militant Islamic State group says that photographs posted online purporting to show his beheading appear real, on Saturday, Sept. 6, 2014. Militants, including from the Islamic State extremist group, seized around 30 soldiers and policemen after overrunning a Lebanese border town in early August. (AP Photo/Hussein Malla, File)
The garden of the house where David Haines, the British hostage beheaded by extremists, lived with his wife and four-year-old daughter in Sisak, central Croatia, Sunday, Sept. 14, 2014. Haines is the third Westerner beheaded in recent weeks by the Islamic State group, which has seized vast swaths of territory in Syria and Iraq. The first two were U.S. journalists. (AP Photo/Eldar Emric)
British Aid Worker David Haines (Photo via YouTube)
Mike Haines, the brother of David Haines who was murdered by Islamic State terrorists, outside Westminster Abbey, London, after he said that his brother did not want the Government to pay a ransom for his release - even if the other likely option was death.
Muslims hold a sign paying homage to French mountaineer Hervé Gourdel, his photo in the centre of the banner, who was beheaded by Islamist militants in Algeria, during a gathering in front of the Paris Grand Mosque, Friday Sept. 26, 2014. The gathering was part of demonstrations by French Muslims against the killings happening in the name of their religion. (AP Photo/Remy de la Mauviniere)
FILE - In this Oct. 1, 2014, file photo, a Kurdish peshmerga soldier prays at a battle field in Mahmoudiyah, Iraq, after Kurdish fighters took control of the northern village from the Islamic State group. The group has released videos or pictures of beheadings of Kurdish fighters, including nine this past week who were captured in clashes near the Syria-Turkey border. All the images came out after the Islamic State group was attacked or suffered setbacks in Kurdish areas in northern Iraq and Syria. (AP Photo/Hadi Mizban, File)
Screen shot from an Internet video released Friday that purports to show an ISIS militant beheading British aid worker Alan Henning, who had been taken hostage by the extremist group.
MANCHESTER, UNITED KINGDOM - NOVEMBER 22: The order of service for the memorial service for murdered British aid worker Alan Henning at Eccles Parish Church on November 22, 2014 in Manchester, United Kingdom. The 47-year-old taxi driver was captured in December while delivering food and supplies to Syrian refugees and was murdered by Islamic State (IS) militants in Syria. (Photo by Andy Kelvin - WPA Pool/Getty Images)
Yellow ribbons for murdered British hostage Alan Henning, are attached to trees in the town centre of Eccles, north west England on October 4, 2014. Britain reacted with horror on Saturday to the beheading of hostage Alan Henning, who many had dared to hope might be spared after a cross-community appeal for his release. Prime Minister David Cameron led tributes to the 47-year-old taxi driver who went to the region as a volunteer to deliver aid and whose death was announced by Islamic State jihadists in a video released late Friday. AFP PHOTO / OLI SCARFF (Photo credit should read OLI SCARFF/AFP/Getty Images)
Syrian refugee Amjad Moghrabi stands in front of a photograph of his colleague, American aid worker Peter Kassig, 26, who converted to Islam while in captivity and changed his name to Abdul-Rahman Kassig, during an interview with The Associated Press in the northern port city of Tripoli, Lebanon, Saturday, Nov. 8, 2014. Kassig was helping victims of the Syrian civil war when he was captured in Syria last year and threatened with beheading by the Islamic State group. Arabic reads, "Justice for Abdul-Rahman." (AP Photo/Bilal Hussein)
A passer-by watches a TV news program reporting two Japanese hostages, Kenji Goto, left, and Haruna Yukawa, held by the Islamic State group, in Tokyo, Friday, Jan. 23, 2015. Militants affiliated with the Islamic State group have posted an online warning that the "countdown has begun" for the group to kill a pair of Japanese hostages. (AP Photo/Eugene Hoshiko)
AMMAN, JORDAN - FEBRUARY 2: Jordanian youth gather for a candle light vigil to condemn the killing of the two Japanese hostages, Haruna Yukawa and Kenji Goto, by the Islamic State (ISIS) group, in a gesture showing solidairity with Japanese people, in front of the Japanese embassy on February 2, 2015 in Amman, Jordan. (Photo by Jordan Pix/Getty Images)
FILE - In this file image made from a video released Sunday Feb. 15, 2015 by militants in Libya claiming loyalty to the Islamic State group purportedly shows Egyptian Coptic Christians in orange jumpsuits being led along a beach, each accompanied by a masked militant. The mass beheadings of Egyptian Christians by militants in Libya linked to the Islamic State group have thrown a spotlight on the threat the extremists pose beyond their heartland in Syria and Iraq, where they have established a self-declared proto-state. (AP Photo, File)
This image made from a militant video posted on a social media website on Wednesday, Aug. 5, 2015, which has been verified and is consistent with other AP reporting, purports to show a militant standing next to another man who identifies himself as 30-year-old Tomislav Salopek, kneeling down as he reads a message at an unknown location. The video purportedly released by the Islamic State group threatens to kill the Croatian hostage if Egyptian authorities do not release "Muslim women" held in prison within 48 hours. (Militant website via AP)
The Italian, left, and European Union flags wave at half mast on the facade of the Scuderie del Quirinale museum in Rome, Thursday, Aug. 20, 2015. Italy's museums are waving their flags at half mast to honor Khaled al-Asaad, the 81-year-old antiquities scholar killed by ISIS militants. (AP Photo/Gregorio Borgia)
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"They're not going through a financial crisis that will lead to their collapse," Hashimi told the newspaper. "They still have 60 percent of Syrian oil wells and 5 percent of Iraq's."

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