they're looking for a word for 'fear of terrorists.'

Ah. wasn't aware of this final criterion. How about deimatotriaphobia? Sorta rolls off the tongue. Don't know what those ancient and wily Greeks would make of it ... I personally will try to use phobetrophobia 'fear of scarecrows or bugbears' in conversation today, or perhaps during the weekly meeting as an agendum (agenda item).