Fake Passports Used in Assassination

This is also a bounce off of the thread When to let your passport out of your hands... news article here; Fake Passports Used in Assassination in Dubai

This is all over the news in Australia - since 3 Australian passports were forged; all 3 of the Australians are currently living in Israel and to put it frankly - our prime minister is a little pissed off; a quick research this morning shows that the Irish government isn't very happy either.

I don't understand A LOT about what's going on here; terrorism relations/plots aren't my most knowledgeable point; but for ANY traveller/passport holder - it's a definitely a scary notion (especially when it's one of your countries passports that are being used). Obviously; all three of the real Australian idenities aren't accused of committing the murder but the Australian woman claims to be scared for her life.

I guess it makes us ask the question - HOW did this happen? The countries involved seem to be thinking that its come from Israel somehow and it definitely makes us re-think passport security. I personally have handed my passport over to many officials across the world - for example, when I was in Mozambique; the Mozambique immigration held our passports for over 2 hours as our visas were issued, and even when your passports are kept in your sight - the officials record all the information that could be needed to fake a passport in the computer systems.

And if your passport is forged - what does that mean? What's the worst that could happen? In this case, considering there is SO many forged passports involved - obviously the real identities aren't going to be arrested for anything but what other information do these terrorists have on these people? Obviously everyone will be re-issued new passports here but what else are these people going to do with these faked passports? Are electronic passports more secure or less secure = are all countries obligated to produce electronic passports now? And finally, are circumstances like this going to effect the way you travel in anyway? For most people (including myself); my main concern in losing my passport is the hassle/inconvenience of not being able to return to my own country (or leave the current country) whenever I needed to - there's the hassle of having to go to the consulate etc; but this is MUCH bigger than that. It also makes me rethink all those copies of my passport that I have going around (hotels, tour companies etc)- obviously a photocopy is a much more secure option than giving up your real passport; but again, not desirable either.

EDIT: Now news articles are circulating saying that Australian passports are among the easiest to forge. Scary!