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Research essayJanuary 2026IBEI · Prof. Antonio Díaz Fernández

The Feedback Loop of Failure

Politicization, conceptzia, and October 7th.

The earlier work the M.A. thesis grew out of. Where the thesis follows the Egyptian warning channel, this essay examines the receiving system itself, and treats October 7 as a non-state actor's intelligence success as well as a state's failure.

Introduction

Intelligence failures are a persistent susceptibility in national security, however they rarely stem solely from a lack of warning signs. Rather, failures result from systemic vulnerabilities: politicization of intelligence that subordinates analysis to preferences in political agendas, cognitive biases that filter evidence through flawed preconceptions, and organizational rigidity that can consequently underestimate the adaptability of non-state adversaries. The October 7th attacks Hamas orchestrated on Israel, killing over 1,200, injuring over 3,000 and kidnapping 250, demonstrate these vulnerabilities and dynamics, all despite Israel having one of the world's most advanced intelligence apparatuses (Baram & Ben-Israel, 2025).

Aman (Military Intelligence) and Shin Bet (Internal Security) directors, as well as neighbouring actors, issued explicit warnings to Prime Minister Benjamin Netanyahu between March and July 2023, six months before the attack, about imminent risks, yet Netanyahu dismissed these warnings as exaggerated and politically motivated (Staff, 2025). The failure to anticipate such an attack reveals structural fragmentation beyond technical deficiency: an accumulation of deeply rooted long-term failures within the intelligence community as a whole. It also highlights the inadequacy of state agencies to anticipate the adaptability of non-state actors and their capabilities.

This essay argues that Israel's October 7th failure resulted from three interconnected factors. First, politicization under Netanyahu, evidenced by Qatari funding to Hamas between 2013 and 2023 and the systematic deprioritization of Gaza threat assessments, subordinated intelligence analysis to political strategy. Second, cognitive dismissal of warnings rooted in a rigid conceptzia (preconception) that Hamas prioritized economic stability and governance over military conflict, leading analysts to discount operational warnings. Third, a capable adversary studied and exploited both.

Section I — Politicization and cognitive dismissal of warnings

The intelligence failure on October 7th can be understood through a feedback loop between politicization, where political strategy corrupts threat assessment, and cognitive dismissal of warnings through rigid preconceptions. Netanyahu's government did not merely fail to detect Hamas's intentions; it also actively created an environment in which warning signs were ignored by intelligence that was conditioned by a "buy out" policy of Hamas and a "divide and rule" Palestinian strategy. The following section examines how explicit policy choices, specifically Qatari funding to Hamas, known as Qatar Gate, institutionalized biased assumptions and caused agencies to defer to "short-sighted policy priorities set by the Prime Minister's Office" rather than challenging flawed consensus (Jones & Geist Pinfold, 2025, p. 3). The relationship between Qatar Gate and the cognitive dismissal based on these policies shows that politicization is not only an external pressure on intelligence analysts and agencies, but the control of intelligence epistemic structures by the government's political agendas.

The Qatar Gate policy: institutionalizing flawed assumptions

Over a decade, Netanyahu allowed for the facilitation of approximately 1.8 billion dollars of Qatari cash transfers to Hamas (Foundation for Defense of Democracies, 2023). Netanyahu's policy is an example of what Gentry (2021) terms the erosion of "civil-intelligence behavior", when leaders prioritize their own policy convenience over the analytical integrity of intelligence agencies. In March 2019, Netanyahu addressed Likud defending his policy in the Knesset: allowing Qatari funds to Hamas "was part of a broader strategy to keep Hamas and the PA separate" and prevent a singular legitimate Palestinian governing force for statehood (Staff, 2019). The idea that giving funds to Hamas would strengthen its ability to become a governing entity of the Gaza Strip rather than a militia-type organization created the assumption that Hamas would be bought out from terror in exchange for economic and governmental stability. This political agenda created institutional pressure on Aman and Shin Bet to rationalize that Hamas was economically co-opted. Rather than dissenting from these narratives, Israeli agencies deferred and strengthened the producer-client paradigm between themselves and Netanyahu, embedding Qatar policy assumptions into their threat assessments of Hamas (Pothoven, Rietjens & de Werd, 2023).

Evidence of the Qatar Gate scandal emerged in a March 2025 Shin Bet investigation, revealing that Netanyahu received explicit confirmation in 2019 and 2020 that Qatari funds were reaching Hamas's military wing under Muhammad Deif (Staff, 2025). When former Shin Bet chief Nadav Argaman informed Netanyahu that the agency had identified the divergence of funds, Netanyahu dismissed the information and continued the process (Staff, 2025). This dismissal demonstrates not only intelligence failure in deterrence, but leadership refusal to adjust policy despite evidence that the economic policy freed Hamas resources for military build-up, a dynamic the agency understood but one that would challenge the Prime Minister's office. Israeli agencies "deferred to the prevailing, but incorrect, assumptions" of political leadership, creating "causal factors" that distinguish the failure from mere analytic oversight (Jones & Geist Pinfold, 2025, p. 4). The depth of politicization also became clearer when two of Netanyahu's closest aides were arrested on suspicion of receiving bribes, fraud and money laundering in connection with alleged Qatari payments (Sharon, 2025). This suggests politicization was not solely influenced by policy preference but potentially also by corruption, where financial gain might have incentivized protecting the Qatar-Hamas funding arrangement despite the intelligence warnings.

Cognitive dismissal: the new conceptzia

Politicization enabled cognitive dismissal by fostering a rigid preconception that resists contradictory evidence, also known as conceptzia. The term stems from analysis of the 1973 Yom Kippur War, when Israeli forces underestimated Egyptian and Syrian mobilization because intelligence believed Arab states were incapable of coordinating an attack together. October 7 replicated this with a new conceptzia: Hamas seeks economic stability, not war. This assumption is rooted in the Qatar policy logic that caused tactical warnings to be viewed as aspirational rather than operational.

A prime example of cognitive dismissal involved Unit 8200's interception of Hamas's "Jericho Wall" operational plan in April 2022, almost eighteen months before October 7th, which detailed border breach tactics, drone use to disable surveillance, and mass infiltration with paragliders and motorcycles (Bergman et al., 2023). Aman labelled this plan aspirational rather than operational, consistent with assessments that Hamas lacked the capability and the intent for a large-scale attack (Jones & Geist Pinfold, 2025, p. 7). Tatzpitaniyot, the female observation soldiers at the Gaza border, filed repeated reports documenting Hamas drills simulating October 7 tactics: mass hostage taking, overrunning kibbutzim, and breaching barriers. These warnings were dismissed as routine training (Cuddy, 2024). Egyptian intelligence also informed agencies that "something big was coming" from Gaza, which Netanyahu downplayed and rejected (Staff, 2025). In July 2023, Shin Bet chief Ronen Bar warned that war was coming, based on Israel's domestic disputes which were seen as emboldening the axis of resistance, and was publicly denounced by Netanyahu (Staff, 2025).

What brings together these dismissals of warnings is not the lack of information but its incompatibility with the conceptzia surrounding Hamas. Ikani et al. (2022) describe this dynamic as the unrealistic expectations paradox: policy makers demand intelligence certainty about the intentions of adversaries while rejecting narratives and warnings that conflict with their policy agendas (pp. 35–38). Netanyahu's statement to Channel 14 in April 2023 that the warnings were exaggerated and that Israel was always preparing reflects this paradox, proven false by October 7th (Staff, 2025). Cognitive bias and confirmation bias best explain this: once Netanyahu's Qatar policy established Hamas as deterred, all evidence had the possibility of being filtered through this lens, with warnings becoming noise rather than signal.

The feedback loop: mutually reinforcing failures

Critically, politicization and cognitive bias were mutually reinforcing in the intelligence failure of October 7. The Qatar policy created the conceptzia and the environment for further politicization of the information surrounding Hamas. When Brigadier General Amit Saar issued four warnings between March and July 2023 about escalation risks, Netanyahu viewed these as politically motivated interventions in his judicial reform agenda rather than sincere assessments (Staff, 2025). Israel's 2023 overhaul crisis saw IDF reservist protests, including intelligence officers, which led Netanyahu to suspect agencies of exaggerating Gaza threats to weaken his government (Jones & Geist Pinfold, 2025, pp. 9–10).

Politicization therefore operated bidirectionally in a feedback loop: leadership pressure around policy shaped intelligence production and assessment, while dismissal of warnings was justified by perceiving agencies as politically biased. This dynamic created a break in epistemic trust and allowed Hamas to exploit these blind spots, demonstrating that adversaries can engineer failure by taking advantage of the politicization-bias feedback loop.

Section II — Hamas's intelligence success and strategic deception

While Section I examined how politicization and cognitive bias created vulnerabilities within Israel's intelligence system, this section shows that Hamas actively exploited them through sophisticated intelligence operations. October 7th must not only be analysed as an Israeli failure but also as a meticulously planned operation rooted in intelligence collection, operational security, and strategic deception by a non-state actor (Seloom, 2025). Hamas's surprise attack was achieved by manipulating Israeli perceptions and denying critical information despite Israel's technological superiority (Seloom, 2025, p. 7). Regardless of Hamas being a weaker and resource-constrained adversary, October 7 overturns assumptions that such an actor cannot overcome a state's surveillance capabilities. The success of the attack reveals how adaptive non-state actors can exploit cognitive biases through their own intelligence strategies.

Collection: OSINT, HUMINT and cyber operations

For years before October 7, Hamas developed a professionalized intelligence system that gathered intelligence on Israeli vulnerabilities, compromising around 2,100 operatives across observation, cyber, SIGINT, OSINT and HUMINT (CTC West Point, 2025). OSINT was specifically valuable because of Israel's democratic, open society. Hamas analysts were able to monitor Israeli media and social media posts by soldiers, as well as available satellite imagery (Seloom, 2025, p. 9). Through this method Hamas was able to establish which units were stationed at bases near Gaza and when weekend duty reductions occurred on holidays, as Hamas attacked on Simchat Torah.

Hamas also conducted cyber-espionage campaigns targeting IDF communication and infrastructure, most likely with the aid of Iranian and Hezbollah training (Seloom, 2025, p. 10). The first targets on October 7th included IDF SIGINT and surveillance bases near the border, which identifies precise knowledge of sensitive intelligence and military sites (Seloom, 2025, p. 11). HUMINT operations involved cultivating sources on border town layouts, civilian populations and security protocols, which shows years of intelligence gathering (Setton, 2025). This multi-dimensional collection approach enabled Hamas to construct a comprehensive picture of Israel's defences, identifying the vulnerabilities of October 7th: understaffed border posts on holidays, reliance on automated systems, and predictable response patterns.

Operational security: compartmentalization and denial

Hamas's operational security was equally critical in denying Israeli intelligence actionable warning despite its advanced surveillance capabilities. Only five individuals are said to have known the full October 7 plan and timing: Yahya Sinwar, Muhammad Deif, Sinwar's brother Muhammad, Rawhi Mushtafa and Ayman Nofal (Bob, 2024). Hamas brigade commanders received tactical briefings three days before the attack without complete operational overview, while field operatives and Nukhba forces fighters learned their specific targets only hours before, minimizing leak risks (Bob, 2024).

This compartmentalization meant that even if Israeli intelligence had penetrated Hamas's lower ranks through informants or SIGINT, the operatives possessed insufficient prior knowledge to reveal the whole plan. Hamas also avoided digital communications for sensitive planning and conducted meetings underground in the tunnels to evade Israeli imagery intelligence (Seloom, 2025, p. 14). By successfully masking attack preparations as routine military training exercises, the same drills the female border observers reported but Israeli leadership ignored, Hamas exploited Israeli confirmation bias that it lacked intent for a large-scale assault (CTC West Point, 2025).

Strategic deception: feeding the conceptzia

Strategic deception was Hamas's most sophisticated instrument, deliberately reinforcing Netanyahu's assumptions of economic compliance. Seloom (2025) documents a two-year deception campaign in which Sinwar projected restraint: engaging in truce negotiations, showing interest in long-term humanitarian arrangements, and even providing Israeli intelligence with information about Palestinian Islamic Jihad during mid-2023 tensions, with the aim of enhancing its credibility as a "legitimate and responsible actor" (pp. 6–7). This behaviour aligned perfectly with the Qatar policy conceptzia that Hamas wanted economic stability over war. Hamas understood these preconceptions, and by ceasing border protests months before October 7 created deliberate manipulation through messaging: the quiet proved their deterrence (Seloom, 2025, p. 7).

Hamas exploited the politicization-bias feedback loop analysed in Section I. Knowing that Israeli leadership wanted Hamas deterred in order to justify the Qatar funding, Hamas performed deterrence. The deception succeeded because it told Israeli policy makers exactly what they wanted to hear, making contradictory warnings, the Jericho Wall plan and the border observers' reports, epistemically inadmissible within the prevailing environment. The timing of October 7, with Shabbat coinciding with Simchat Torah, was chosen because Israeli defences would be minimal, a vulnerability identified through holiday patterns (Bob, 2024). Hamas not only benefited from Israeli failure, it helped engineer that failure by manipulating cognitive biases, denying intelligence through its operational security, and exploiting the policy-driven blind spots.

This demonstrates that non-state actors can adapt and achieve strategic surprise against technologically superior adversaries by understanding and manipulating target epistemology, a lesson with implications for the future of Israeli intelligence and the reforms needed to counter such threats.

Section III — Reforms, accountability, and lessons for democratic intelligence

The October 7th attacks triggered a need for systemic reform within Israel's intelligence community, yet institutional change has been challenged by the same political dynamics that enabled the failure. While operational reforms have addressed tactical vulnerabilities, including improved border surveillance, restructured threat assessment protocols and enhanced inter-agency coordination, the deeper structural dynamics of politicization and cognitive dismissal remain largely unaddressed due to the leadership's resistance to accountability (Jones & Geist Pinfold, 2025, p. 12).

In the immediate aftermath, the IDF and intelligence agencies implemented operational reforms. Aman restructured its Gaza analysis division, creating teams to challenge prevailing threat assessments through red teaming exercises designed to simulate adversary perspectives (Foundation for Defense of Democracies, 2025). Shin Bet enhanced its HUMINT networks within Gaza, prioritizing the targeting of Hamas senior leadership circles after recognizing the failure to detect compartmentalized planning (Margolin & Levitt, 2023). Border surveillance was enhanced with sensor systems and protocols requiring human verification of automated alerts (Lappin, 2024).

However, these reforms operate within the same epistemic framework that led to the October 7 failure. They do not address the politicization that rendered contradictory analysis within the intelligence agencies inadmissible. As Gentry (2021) notes, procedural reforms that do not change producer-client relationships risk becoming "symbolic compliance" rather than substantive change (p. 773). Furthermore, the underlying Qatar policy framework that generated the flawed assumptions remained active until March 2025, demonstrating how political agendas can override the need for institutional learning (Foundation for Defense of Democracies, 2025).

The most significant obstacle to meaningful reform has been Netanyahu's refusal of an independent investigation. In December 2024, Netanyahu rejected calls for a state commission of inquiry, establishing instead a government-appointed review panel which lacked subpoena power (Sokol, 2026). This directly contradicts the precedent set after the 1973 Yom Kippur War, when an independent investigation led to Prime Minister Golda Meir's resignation, establishing a mechanism essential for institutional learning and reform (Jones & Geist Pinfold, 2025, p. 13).

The dismissal of Shin Bet chief Bar in March 2025, following his public request for an independent commission, highlights the political costs of challenging Netanyahu's government. Bar's removal reinforced the dynamic that prioritized political loyalty over analytical integrity. Without an independent commission, intelligence agencies cannot investigate the influence of the Qatar policy, nor the potential causal relationship between political agendas and analytical failure, making them prone to repeating the same mistakes (Ikani et al., 2022, pp. 41–43).

October 7 offers three critical lessons for democracies at risk of non-state actor aggression. First, reliance on technological superiority cannot always compensate for epistemic corruption: Israel possessed intelligence providing actionable warning, yet politicization made it inadmissible within the decision-making process. Second, adaptive adversaries can exploit democratic vulnerabilities by studying target governments to identify cognitive biases and policy-driven assumptions. Third, the accountability resistance of Netanyahu and his government reveals a democratic paradox: leaders most responsible for failures often possess the power to obstruct investigations. I argue that the best solution lies in independence for investigative commissions, whistle-blower protections, and legislative oversight free of executive interference. Reforms should extend beyond the intelligence agencies to legislative design, and hold those in power accountable for their failures in protecting their citizens.

Conclusion

The October 7 attacks exposed the strategic surprise that often results not from a lack of information but from political and cognitive systems that cause available intelligence to become inadmissible. Israel's failure was underscored by Netanyahu's Qatar policy, which created institutional pressure to see Hamas as deterred. Cognitive biases filtered warnings through this preconception, and Hamas exploited both through its sophisticated deception. The subsequent resistance to an independent commission of inquiry suggests these dynamics remain unresolved.

Yet October 7 demonstrates that intelligence failure is not inevitable. The warning signs existed: Unit 8200's Jericho Wall interception, the border observers' reports, and internal assessments all gave sufficient information to prevent October 7 from happening, had the epistemic conditions of the agencies permitted their integration into the system. This shows that intelligence agencies must prioritize evidence-sensitive processes over political convenience: institutionalizing dissent, protecting analytical independence, and ensuring accountability is not manipulated by the executive branch. For democracies that confront adaptive non-state actors, the lesson is clear: technological capabilities matter less than the political will to maintain intelligence systems structurally resistant to the cognitive corruption that makes strategic surprise possible.

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