Federal Financial Data
Understanding Active Darknet Markets
Active darknet markets are platforms that operate on the dark web, facilitating the illegal trade of various goods and services. These markets are accessible only through specific anonymity-providing software, such as Tor, which helps users maintain their privacy while browsing and conducting transactions.
There are plenty of other markets out there, and it’s extremely easy for vendors to tell their biggest customers which one they’re moving to or are already active on. Similar to previous years, the vast majority of darknet market transactions flow through exchanges. Exchanges are by far the most common service customers use to send cryptocurrency to vendors, and for vendors to send funds to cash out.
Immigration and Customs Enforcement (ICE) Homeland Security Investigations’ (HSI) Cyber Crimes Unit investigators submerge themselves in the world of illicit criminal activity that takes place in the shadows of the Darknet. The NCA said Genesis had operated by selling credentials from as little as 70 cents to hundreds of dollars, depending on the stolen data available. United States Justice Department Deputy Attorney General Lisa Monaco said in a statement many of the forum’s users were arrested on Tuesday. A senior FBI official said arrests had been made in the US but declined to provide further details.
The Mechanics of Active Darknet Markets
Active darknet markets function similarly to conventional e-commerce websites but involve illicit goods. Here’s how they typically operate:
The general volatility of darknet markets has led to calls for further decentralization of transactions to protect both buyers and vendors. If cryptocurrency is held in a customer account on a darknet platform, it’s always at risk if a site shuts down. When looking at it this way, the largest markets are primarily drug shops and fraud shops, which you can see in Chainalysis’ graph below.
- Anonymity: Users employ anonymity tools to access these markets.
- Cryptocurrency Payments: Transactions are usually conducted using cryptocurrencies, minimizing the visibility of financial activities.
- User Reviews: Buyers can leave feedback and rate sellers, encouraging trustworthy practices.
- Escrow Services: Many markets utilize escrow systems to protect both buyers and sellers.
It should come as no surprise that Dark Web marketplaces, which are regular resellers of hacked credentials and hacker attack methods, also fall victim to hackers. Sometimes, these are organized by competitors in order to increase their market share by doing away with other markets. Other times, hackers gain access to Dark Web market servers just to see if they can. Generally, these types of attacks are ongoing and marketplace operators must remain vigilant to ensure their own safety, as well as that of their users.
As such, U.S. persons, wherever located, including firms that process virtual currency transactions, must be vigilant against attempts to circumvent OFAC regulations and must take risk-based steps to ensure they do not engage in prohibited transactions. OFAC is closely monitoring any efforts to circumvent or violate Russia-related sanctions, including through the use of virtual currency, and is committed to using its broad enforcement authorities to act against violations and to promote compliance. Whether you want to access dark web markets or simply browse anonymously online, using a VPN alongside the best privacy browsers like Tor — which is still available to access the dark web today — can help protect your privacy and security. For more information on darknet markets, you can read the full report by Chainalysis here. Interestingly enough, if you were to exclude Hydra and other darknet markets that serve a particular region, the darknet markets are much less concentrated with several different markets taking in significant revenue. Darknets are not limited to criminal activities; nation-state actors use these hidden platforms for espionage, disseminating propaganda, and recruiting agents.
Types of Goods and Services Offered
- The chart below reveals darknet market revenue and the number of transfers to those markets.
- However, because of the illicit nature of the dark web, many websites don’t want to be found, as such there is no easy way to navigate the dark web.
- The hackers were able to access the U.S. company’s system because of a cookie purchased from Genesis Market.
- Because of this short lifespan, security professionals need to constantly be on the lookout for the next big marketplace.
The range of products found on active darknet markets is vast, including but not limited to:
For instance, in 2019, Riviera Beach City in Florida got their systems hacked by cybercriminals, and they end up paying out 65 bitcoins, which was equivalent to $600,000, to the attackers as ransom. In 2017, the Korean web hosting firm Internet Nayana ended up paying $1.14 million in ransom payments, which is considered to be the biggest ransomware payout to date. These payouts encourage cybercriminals, resulting in new ransomware attacks with more features. In my experience, some cyber insurance companies are also indirectly causing a surge in these ransomware attacks because they have started to pay the ransoms, which costs them less than remediation or backups.
- Drugs: Various illegal substances, including narcotics and hallucinogens.
- Stolen Data: Personal information, credit card details, and login credentials.
- Counterfeit Goods: Fake identification documents, luxury items, and software.
- Hacker Services: Such as hacking into accounts or launching cyber attacks.
- Weapons: Although less common, some markets do offer arms and ammunition.
Furthermore, border checks can be random or may only be informed by the country of origin, or how the delivery is labeled, as in the case of parcel shipments (Männistö et al., 2021). Another source of possible bias present in check-selection procedures are large differences in the estimates of counterfeit product types produced by different agencies (IP Crime Group, 2015; OECD/EUIPO, 2019). For example, estimates strongly differ across agencies for footwear (20 percentage points) or for electronics (11%) and clothing (10%).
Risks and Challenges
Engaging in transactions on active darknet markets carries significant risks:
- Legal Consequences: Users may face criminal charges if caught buying or selling illegal products.
- Scams: The anonymity of sellers can lead to fraudulent schemes where buyers lose their money.
- Lack of Regulation: There are no safety measures or consumer protections available.
- Cybersecurity Threats: Users’ devices may be compromised by malicious actors exploiting the platform.
FAQs about Active Darknet Markets
Q: How do I access active darknet markets?
A: You typically need to use the Tor browser and search for specific market links through online forums or directories.
Q: Are all darknet markets illegal?
A: Yes, most active darknet markets deal in illegal goods, although some claim to provide anonymized legal services.
Q: Can I be traced while using these markets?
A: While using tools such as Tor enhances privacy, law enforcement agencies have sophisticated methods to track illicit activities.
Q: What payment methods are commonly accepted?
A: Cryptocurrencies like Bitcoin, Monero, and others are the primary payment options due to their anonymous nature.
In summary, active darknet markets represent a significant component of the underground economy. While they offer anonymity and a wide range of illegal goods, the associated risks make participation a dangerous endeavor.
