Terrorist attack kills one in Austrailia

(CBS) -- Terror hit the streets of Melbourne, Australia when a man set fire to a pick-up full of gas canisters and then went on a stabbing spree, attacking three people--killing one.

A video on social media shows a bystander trying to ram the suspect with a shopping cart as police surround him, but the attacker keeps slashing wildy - trying to stab officers.

Shocked residents watched from a window as the violent rampage continued before police eventually shot and killed the man.

"From what we know of that individual, we are treating this as a terrorism incident," said Victoria State Police Commissioner Graham Ashton.

Australian authorities say the Somalian man was known to intelligence officials. ISIS claims the attacker was one of its fighters.