Terrorists are everywhere, comrades.  Be afraid!  Your neighbor, your grocer, that greasy punk that screwed up your wheel alignment, that swarthy guy over there!  Anybody could be a terrorist!  Think of the power of being able to inform on them!
In East Germany, they say, there was one full-time Stasi agent or informer for every 66 citizens.  Counting part-timers like the people in this creepy PSA, it might have gone as high as one for every 6.5.  East Germany eventually imploded, but it was a hell on earth while it lasted.  These "iwatch" people (notice how I didn't use an obscenity there?) seem to think it sounds like fun.
H/T to Radley Balko.
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