Understanding Darknet Markets
The term darknet markets refers to online platforms that facilitate the buying and selling of illegal goods and services. These markets operate on the dark web, a segment of the internet that is not indexed by traditional search engines and requires specific software, like Tor, for access.
But, in under three years since (i.e., between mid-2017 to 2020), there’s been a near 300% increase in growth in the size of this market (i.e., to $315 million). What makes this more important is the fact that drug markets on the dark web only emerged a decade or so ago. To avoid traceable purchases, vendors almost exclusively accept cryptocurrency like Bitcoin through escrow, enabling customers to retrieve their money in case their purchases are not received for any reason.
Current Landscape of Darknet Markets
As of now, several darknet markets are live and functioning, offering a variety of illicit products ranging from drugs to hacking services. It’s essential to keep in mind that engaging in any transaction on these platforms carries significant legal risks.
Some mainstream publications such as the New York Times maintain a presence on the dark web for just such tips, and other publications around the world maintain a presence to circumvent government-imposed internet censorship. For example, during the Russian-Ukraine conflict, citizens used dark web versions of social media to share information when traditional access was blocked. By the time it was shut down in October 2013 and Ross Ulbricht arrested, the site had traded an estimated $183 million worth of goods and services. The migration of vendors, plus the timing and source of OMG’s initial revenue suggests that Hydra administrators may have been involved with the development of OMG.
The veracity of the information posted is unclear and could easily be falsified. Moreover, threat actors offer ransomware and stealers “as a service” in these markets. Another topic in modern DWMs is the transactions made with cryptocurrency and the concept of crypto laundry.
- AlphaBay – While originally shut down, there have been reports of similar platforms emerging recently.
- Hydra – Primarily popular in Russia, this market allows users to buy narcotics and counterfeit goods.
- SkyNet – Known for a wide range of offerings, including digital goods and services.
- Empire Market – Once a prominent player, it has seen fluctuations in activity.
- White House Market – Noted for its focus on providing high-quality goods and excellent vendor reputation.
Dream Market announced it was shutting down operations on April 30, 2019 and transferring services to a new onion address under new management. The trend observed in 2023, where services offering antivirus (AV) evasion for malware (cryptors), is expected to persist into 2024. A cryptor is a tool specifically designed to obfuscate the code present in a malware sample. Its purpose is to make the code undetectable by signature-based scanners, thus enhancing its stealthiness. Federal prosecutors in San Francisco also filed criminal money laundering and drug charges against a 30-year-old resident of Russia, Dmitry Olegovich Pavlov, described as the site’s alleged administrator. “The sellers believe they are relatively immune – they don’t use their real details so are hard to track down even if a site is commandeered – but the users have to give delivery addresses and the like.
A lot of websites and articles portray the Dark web as an elite network, only accessible to the most tech-savvy hackers. However, people often consider the entire deep/dark web to be illegal and threaten to even talk about it. Considering the monthly sales volume by category (Fig. 5), we observed a similar trend for available listings (Fig. 3), with most sales occurring between mid-2014 and mid-2015. Again, watches are represented most, followed by forgeries and “Other”.
Businesses operating in such regions may need to adapt to the technical challenges and risks posed by using darknets for legitimate purposes. The Genesis Marketplace, available both on the dark web and the public internet provides an avenue for attackers to buy digital fingerprints. As shown in Figure 1, the site features a wiki, a news page, a rolling ticker of how many bots are available for sale, and a ticketing system. If you wanted to become a seller on the website, entry is open, and the marketplace will take a 2% commission on every sale with a vendor bond varying between the $0 and $250 mark. Another one of the biggest Darknet marketplaces out there, Berlusconi Market prides itself on over 12,224 listings, with only 6,400 of them being drug-related, meaning there are thousands of listings here for you to explore. This particular market is modeled on the late Alphabay Market that was seized and shut down in the middle of 2017.
Lime Market, thought to be run by the former admins of DarkBay, appears to be a very small market and is not expected to become a very notable enterprise. Invictus Market, on the other hand, is run by the admins of the well-known Imperiya darknet service—an enterprise that creates and maintains darknet vendor shops for a modest fee. As the admins of Invictus already have a good reputation among the darknet community, it stood to see quick growth. Ransomware-as-a-service groups patronize these black market e-commerce sites to advertise for affiliates. Initial access brokers use them to advertise new victims, while malware developers hawk their wares and data brokers sell stolen information, including payment card details.
Removing excuses includes approaches such as setting up rules or posting instructions to reduce ambiguity in situations that can be exploited. In contrast to the differences observed for counterfeit products seized at borders and offered on dark markets, product origins seem to match better across data sources. For example, between 2014 and 2016, seized goods mainly originated from China (55%) and Hong Kong (26.2%) (EUIPO, 2019; OECD/EUIPO, 2019). However, seized goods also originated from the United Arab Emirates (3.8%), Turkey (3.1%), Singapore (2.8%), Thailand (1.4%), India (1%), and other countries (each with less than 1%) (OECD/EUIPO, 2019). In contrast, for the dark markets, counterfeits were either not explicitly offered from these countries (e.g., Singapore, Thailand, India), or they accounted for less than 1% of the listings. Interestingly, the USA seems to account for 5% of counterfeits on dark markets while only accounting for 0.4% in seized goods.
How to Access Darknet Markets
Accessing darknet markets typically requires several steps:
- Download and install Tor: This browser allows users to navigate the dark web securely.
- Create a cryptocurrency wallet: Often, transactions on darknet markets are conducted using cryptocurrencies like Bitcoin for anonymity.
- Find reliable links: Many marketplaces have .onion domains that are regularly changed to evade law enforcement.
- Ensure security: Use a VPN and practice safe browsing habits to protect your identity.
Risks Associated with Darknet Markets
Product Categories
- Dark web marketplaces are online marketplaces where people can buy and sell illicit goods and services under the protection of the anonymity of the dark web.
- UniCC had risen to become market leader following the retirement of Joker’s Stash, and amassed sales of $358 million.
- British, American, and Australian forces then helped to follow the clues to verify real-world information about them.
- To facilitate the application, we have created seven categories and classified the trust factors into these categories (see Table Table11).
Engaging with darknet markets poses numerous dangers:
- Legal consequences: Participation in illegal buying and selling may lead to criminal charges.
- Scams: Many vendors may not deliver promised goods or services, resulting in potential loss of money.
- Security threats: Exposing personal information on these platforms can lead to identity theft.
- Law enforcement monitoring: Authorities actively monitor approaches to the darknet and may track activities.
FAQs
What are the most common goods sold on darknet markets?
The most common items include illicit drugs, counterfeit currency, stolen data, forged documents, and hacking services.
Are there legitimate goods sold on darknet markets?
While most transactions involve illegal products, some vendors sell items like privacy tools and software, but browsing these markets still poses significant risks.
How can one remain anonymous on darknet markets?
Using a combination of Tor, VPNs, and cryptocurrency for transactions can enhance anonymity but does not guarantee complete safety.
What should I do if I encounter a scam on a darknet market?
Report the incident on relevant forums or communities where users share experiences, but do not provide any personal information.
Conclusion
While many darknet markets are live and operational, the risks involved in navigating these platforms cannot be understated. Individuals should exercise caution and be fully aware of the implications of their actions within this shadowy facet of the internet.
