The alleged beheading of a Croatian hostage in Egypt took a sinister turn with the revelation that a criminal gang kidnapped him, then demanded a ransom before turning him over to the Islamic State group.

An online image circulated Wednesday purported to show a Croatian hostage held by the Islamic State group's Egyptian affiliate beheaded.

A video purportedly released by the Islamic State group threatens to kill a Croatian hostage if Egyptian authorities do not release "Muslim women" held in prison within 48 hours.