Coordination In The Dark
In July of 2017, a global law enforcement sting known as Operation Bayonet took down AlphaBay’s sprawling narcotics-and-cybercrime bazaar, seizing the site’s central server in Lithuania and arresting its creator, Alexandre Cazes, outside his home in Bangkok. Yet in August of last year, AlphaBay’s number-two administrator and security specialist, publicly known only as DeSnake, suddenly reappeared, announcing AlphaBay’s resurrection in a new and improved form. Now, 10 months later, thanks in part to a tumult of takedowns and the mysterious disappearances of competing dark web markets, DeSnake’s reincarnated AlphaBay is now well on its way to its former heights atop the digital underworld.
Alternatively, watches might be less prone to bulk shipments and make their way through borders differently than other items (e.g., single parcel shipments through the air versus containers at ports). Hence, watches might be shipped more diversely, possibly going through different security measures and being more difficult to catch overall. However, single parcel shipments might only be worthwhile for high-value items, such as watches, but less profitable for items that need high-volume sales. Previous studies about dark markets sometimes encountered holding prices, which vendors use to mark out-of-stock listings, preventing their removal from the market (Soska & Christin, 2015; Wegberg et al., 2018).
Understanding the Dark Market
The term dark market refers to online marketplaces that are often associated with illegal activities, including the trade of illegal goods and services. These platforms utilize encryption and anonymity techniques to protect the identities of their users.
In addition, sunglasses, handbags, and other accessories, which make up around 10% of counterfeits on dark markets, are not listed individually in the report but are grouped within headgear (1.5%), miscellaneous (0.4%), and articles of leather (13.4%). The remaining categories show a similar distribution (OECD/EUIPO, 2019). Therefore, to better understand the counterfeit economy on the dark web, we examined the prevalence and sales of counterfeits sold on 89 dark markets for the 3-year period January 2014–January 2017. Specifically, we quantified the price, volume, type, and origins of advertised counterfeits and estimated their sales volume and the value the same counterfeits would attract on the surface web. We then compare the results to measures and estimations from border seizures conducted by law enforcement over the same period. By highlighting differences, we can identify product groups for which counterfeiting appears to be a problem and would be overlooked based on an analysis of seizures alone.
European authorities plan to use seized DarkMarket servers from Ukraine and Moldova to investigate the buyers and sellers who used the site for criminal transactions. Examples include the sale of high-quality products with low risk for contamination (including lacing and cutting), vendor-tested products, sharing of trip reports, and online discussion of harm reduction practices. Police shutdowns have been shown to correlate with a sudden increase in drug listings in coexisting marketplaces16,17.
Characteristics of Dark Markets
Dark markets differ from traditional online marketplaces in various ways, such as:
- Anonymous Transactions: Users typically transact using cryptocurrencies like Bitcoin, which provide a degree of anonymity.
- Hidden Listings: Products and services are often not indexed by traditional search engines and can only be accessed via specific software.
- Enforcement Evasion: Dark markets often employ various strategies to evade law enforcement, making them difficult to shut down.
- Reputation Systems: Customers and vendors use feedback and ratings systems to build trustworthiness.
While it appears Covid has put this BTC fundraising plan on hold, the announcement makes it clear that Hydra plans to expand. That way no physical exchange is made, and unlike other markets on the dark web, vendors don’t need to risk using the postal system. Before its disruption, DarkMarket boasted nearly half a million users, more than 2,000 active sellers, and had overseen over 320,000 different transactions involving the transfer of 4,650 bitcoin and 12,800 monero, the equivalent of about €140m (£122.6m). It dealt in drugs, counterfeit currency, stolen or fake credit card details, mobile SIM cards and malware. Considering the recent growth, Dark Web Markets will likely reach larger transaction volumes. In addition to illegal products such as drugs, these black markets, which are marketed in data sets, data leaks, malware, and exploits, pose a significant danger to every institution.
German law enforcement arrested the Australian man believed to be the operator of the illegal site, and seized 20 servers that hosted it, bringing an end to what had become a hotbed of illegal activity. Just like eCommerce stores on the regular web, darknet marketplaces come and go and rise in fall in popularity. Currently, and from my perspective, Empire is the most popular darknet market but is frequently offline for periods, making it hard to access.
Common Products and Services Found on Dark Markets
While a range of items may be exchanged, the most common include:
Similar posts on Mega Darknet Market confirm it offers these services, too. We don’t yet have confirmation of OMG offering money laundering services, but again, the on-chain data suggests it likely does. More than 20 servers in Moldova and Ukraine were also seized, with police hoping to acquire further information about other participants in the marketplace.
- Illegal Drugs: A significant portion of transactions involves narcotics.
- Stolen Data: Such as credit card information and personal identification.
- Counterfeit Goods: Products that mimic branded items, often sold at a lower price.
- Hacking Services: Including but not limited to ddos attacks, account hacks, and malware.
The Structure of Dark Markets
Dark markets generally consist of several components, including:
- Vendors: Individuals or groups selling goods and services.
- Buyers: Individuals seeking to purchase items without disclosing their identity.
- Escrow Services: To mitigate risks, many dark markets use escrow services to ensure that the buyer and seller fulfill their agreements.
Risks and Legal Implications
Engaging in the dark market can expose users to significant risks:
Legal Risks
Involvement with dark markets can lead to serious legal consequences, including:
- Criminal Charges: Users can be prosecuted for purchasing or selling illegal items.
- Seizure of Assets: Law enforcement agencies may seize assets tied to illegal activity.
Personal Risks
Beyond legal issues, there are personal risks such as:
- Fraud: Many dark market transactions involve scams, with buyers losing money on non-existent products.
- Identity Theft: Sharing personal information can lead to identity theft or data breaches.
- Exposure to Dangerous Individuals: Buyers may encounter individuals involved in violent crime.
How to Access Dark Markets
Accessing the dark market typically requires the following steps:
- Install Tor Browser: Most dark markets operate on the Tor network, which facilitates anonymous browsing.
- Use Cryptocurrency: Familiarize yourself with how to purchase and use digital currencies.
- Find Market Links: Links to dark markets are usually shared in forums or through other underground channels.
- Establish Anonymity: Utilize Virtual Private Networks (VPNs) and other privacy tools.
Frequently Asked Questions
Is using the dark market illegal?
While browsing dark markets is not inherently illegal, purchasing illegal goods and services is against the law in most jurisdictions.
What payment methods are used on dark markets?
- InTheBox features over 400 custom “web injects” that threat actors can buy and use to hack into different mobile apps and services.
- These threat actors also continue to use the dark web to prey upon everyday users.
- Thus, for those products, we cannot say which European countries they originate from specifically.
- The color of the lines show the former Hydra users’ category of activity and the thickness of the lines show the proportion of their activity flowing to new markets after Hydra was shut down.
- At the time of this writing, DarkOwl uncovered that Infinity Market has a promotional presence across several mid and top-tier Russian and English-speaking deep web criminal forums.
Cryptocurrencies, especially Bitcoin, are the most common payment methods due to their anonymity features.
Can law enforcement track dark market activities?
While anonymity tools make tracking difficult, law enforcement agencies have developed methods to investigate and dismantle dark markets.
Are all transactions on dark markets illegal?
Not all transactions are illegal; some users buy legal products. However, the majority of traffic on these sites involves illicit goods and services.
Conclusion
The dark market phenomenon presents a complex landscape shaped by anonymity and illegal activities. Understanding its workings, risks, and implications can help users navigate this precarious environment, whether they aim to engage in it or stay far away from it.
