Understanding Dark Web Markets
There Are Many More Cyber Weapons At Nation-State Threat Actors’ Disposal On The Darknet
The dark web markets represent a clandestine section of the internet where illegal goods and services are bought and sold anonymously. Dark web markets operate on networks that require specific software, configurations, or authorization to access, typically using software like Tor (The Onion Router).
By using the Tor browser, internet users can access the Dark Web to communicate and share data in confidence, without the risk of being traced. Most users on the Dark Web are logged into a Virtual Private Network (VPN) to further conceal themselves. Most people only interact with the visible or “surface web.” These are the nearly two billion public websites you can access through search engines — from Wikipedia to public sector websites and news sites.
Features of Dark Web Markets
Moreover, our analysis paves the way to a deeper understanding of U2U transactions in online marketplaces. Recent results have shown that transaction networks and activity on DWMs and regulated online marketplaces share several robust macroscopic properties43. One might therefore hypothesise that U2U trading is also a prevalent feature on regulated online marketplaces.
Some key features that characterize dark web markets include:
“Exit scams” occur when marketplace operators suddenly shut down, stealing funds from escrow wallets and disappearing. Dark web visitors have turned to sites like Dread, which is similar to a dark web version of Reddit, for information. You can use Dread to learn which dark net markets are reputable and their locations.
The result is 40 distinct marketplace ego networks containing user-DWM and U2U transactions, whose typical structure is depicted in Fig. In each network, links are directed and the arrows point at the receiver of Bitcoin. Since users often migrate from one DWM to another12 and become users of multiple DWMs, the 40 ego networks are not isolated but can be combined to form one full network, as shown in Fig. (a) Schematic representation of an ego network surrounding a dark web marketplace (“DWM”, in red). User-to-user (U2U) pairs are represented by arrows (direction indicates the flow of Bitcoin) and by their respective users.
- Anonymous Transactions: Users often utilize cryptocurrencies, primarily Bitcoin, to ensure their identities remain hidden during transactions.
- Decentralization: Many dark web markets are not governed by a centralized authority, making them harder to shut down.
- Variety of Offerings: Products range from illegal drugs and counterfeit goods to hacking services and stolen data.
- User Reviews: Many markets feature rating systems for buyers and sellers, fostering trust within the anonymous environment.
Based on a report by OECD/EUIPO (2019), which summarizes findings regarding seized counterfeits between 2014 and 2016, we see that not all categories represented on dark markets are also present in seized goods (Table 5). Also, the distribution of counterfeits found on dark markets and seized products varies greatly. 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%). Starting in or about November 2015, Pavlov is alleged to have operated a company, Promservice Ltd., also known as Hosting Company Full Drive, All Wheel Drive and 4x4host.ru, that administered Hydra’s servers (Promservice).
DarkMarket, reportedly the world’s largest dark web marketplace, has been taken offline by a Europol-coordinated international operation, according to authorities (via Gizmodo). 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. When browsing through different darknet marketplaces, we realized that several of the most popular ones had been shut down. The illegal nature of these marketplaces makes them a constant target for governments and law enforcement agencies. It’s not surprising that many products available on dark web marketplaces are illegal. While there is some variance between marketplaces, the most common products are drugs and contraband items.
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. Surprisingly, such uncertainty has not prevented a steady growth in users and revenue of dark marketplaces. Although it is difficult to identify relevant transactions from the Bitcoin blockchain and to quantify marketplace volume8,9,10,11, European authorities have estimated that between 2011 and 2015 dark marketplace drug sales were 44 million US dollars per year. A subsequent study estimated that, in early 2016, dark marketplace drug sales have grown to between 170 million and 300 million US dollars per year12. Recently, Berlusconi, known mostly for selling stolen IDs, was seized by the Italian police who estimated its annual transactions at 2 million euros2. Operating outside the law, dark marketplaces do not offer any protection to customers or vendors.
Common Products and Services on Dark Web Markets
Typically, dark web markets offer a wide range of illegal items and services, which can include:
- Illegal drugs (marijuana, cocaine, etc.)
- Counterfeit currency and documents
- Stolen credit card information
- Hacking services
- Weapons and explosives
- Private databases of personal information
Risks Associated with Dark Web Markets
Engaging with dark web markets poses significant risks, both legal and personal, including:
- Legal Consequences: Purchasing illegal goods can lead to serious criminal charges.
- Scams: The anonymity of transactions can result in fraudulent activities and scams.
- Exposure to Malware: Many dark web markets are rife with malicious software that can compromise users’ devices.
- Loss of Privacy: Despite anonymity measures, law enforcement agencies may still track users.
How to Access Dark Web Markets
Accessing dark web markets requires some specific steps:
- Download and install the Tor browser.
- Configure necessary privacy settings to enhance security.
- Find reliable links to dark web markets, often listed in forums or on deep web directories.
- Use a VPN for an additional layer of anonymity.
FAQs about Dark Web Markets
Q: Are all transactions on the dark web illegal?
- However, this has not prevented further marketplace closures, either due to police raids or due to scams.
- The reasons for their exclusion were that they were not included in the data archive or lacked sufficient product categorization needed for the current analyses.
- Here we discuss cryptoasset compliance, blockchain analysis, financial crime, sanctions regulation, and how Elliptic supports our crypto business and financial services customers with solutions.
A: While many activities are illegal, some users may engage in non-illegal transactions, but the majority of the content leans toward illicit activities.
Q: How are dark web markets shut down?
A: Law enforcement agencies worldwide conduct sting operations and use various techniques to infiltrate and shut down these markets.
Q: Is it safe to visit dark web markets?
A: Visiting dark web markets is inherently risky. Users can expose themselves to legal issues, scams, and cyber threats.
Q: Can I get caught while using dark web markets?
A: Yes, law enforcement agencies actively monitor dark web markets, and users can be tracked through various means.
Conclusion
The dark web markets demonstrate a complex ecosystem where anonymity and illicit trade thrive. While they may seem appealing to some, the risks and potential legal ramifications significantly outweigh any perceived benefits. Awareness and understanding of this hidden part of the internet are crucial for anyone considering navigating it.
