William Watkins has come up with a novel approach:

One answer might lie in a forgotten provision of the Constitution: Congress’s enumerated power to “grant Letters of Marque and Reprisal.” These are legal documents authorizing a private person or entity—privateers—to use force to protect against enemies of the issuing nation.

Privateering played a critical role in the America Revolution. Approximately seven hundred ships were commissioned as privateers, and they neutralized almost as many British vessels. …

Congress last issued letters of marque and reprisal during the War of 1812. Privateering lost favor as the U.S. government grew and its financial power to equip warships increased and as naval and maritime technology improved. …

Terrorists employ creative methods to inflict brutality and death, but the civilized world has not responded with an innovative response. Allowing privateers would encourage such a response. Congress or private charities could reward entrepreneurs who hack terrorist communication networks, locate stashes of assets, or uncover terrorist cells hiding in our cities.

Evidence that economic incentives could help in the fight against terrorism can be seen in America’s thriving bounty-hunting industry. In the criminal justice system, bounty hunters have a proven record of catching fugitives and bail-jumpers more often than when only government police are involved. They must, of course, follow rules laid down by the authorities. Congress could craft similar rules to ensure that anti-terrorism privateers remain accountable.

The State Department has used bounties on a small scale with much success. Since the inception of the Counter-Terrorism Rewards Program in 1984, more than $125 million has been paid to over 80 individuals who have prevented terrorist attacks or brought terrorists to justice. The most infamous culprits: Saddam Hussein’s sons, Uday and Qusay, and Ramzi Yousef , a leader in the 1993 attack against the World Trade Center.

History shows that private operatives can succeed where government troops fail. Businessman H. Ross Perot used his private funds to rescue his workers trapped in Ayatollah Khomeini’s Iran, when President Carter’s efforts to end the hostage crisis met with failure. Security firms such as G4S, DynCorp, and Control Risks demonstrate impressive capability, but why not broaden the scope in the war against terrorists? Allowing more private security firms to deploy their equipment and know-how would go a long way toward putting terrorist groups on the dustbin of history.

It’s time that we let them.