Exchange Market: DarkOwl Analyst’s Observations
Understanding the Darknet Market
Darknet markets or cryptomarkets have now been operating for 5 years (since the launch of Silk Road in February 2011). In the deep web, site owners, vendors and buyers are able to remain relatively anonymous as their IP addresses are masked. Purchases are made using the decentralised virtual currency Bitcoin, which can also be used relatively anonymously. According to Chainalysis, there were 37 darknet markets operating at the end of 2020. Overall, she says the direction of travel continues to be toward what’s known in the darknet community as “autoshops,” referring to sites that sell goods and services in a highly automated manner.
World market is a darknet market that is self coded by its developers with top notch security. World market has strong anti-DDoS protection, is user friendly, and easy to navigate. Market offers access to illicit drugs, hacking utilities, banking information and more. It began operation in July 2020 but was almost non-existent in the darknet market before the downfall of Hydra. Four of the top five highest-earning darknet markets were drug-focused markets, followed by a fraud shop called Brian Dumps.
The term darknet market refers to an online platform that operates on the fringe of the known internet, commonly accessed using specialized software like Tor. These markets provide a space for the buying and selling of goods and services—often illegal or illicit—in a manner that emphasizes user anonymity and privacy.
The differences observed for Tobacco, Footwear, Electronics, Clothing, and Watches, are further examined in the Discussion section. Inspired by previous research (Wegberg et al., 2018), we used the annotated listings to train a multiclass classifier to predict the labels of the remaining unlabeled counterfeits. Obtaining labels for all the listings has the advantage of allowing us to conduct our analyses for the whole dataset, including the price or individual texts of the listings, which would be more difficult through estimations from a sub-sample.
Characteristics of Darknet Markets
Dark marketplaces are full of illegally obtained data and credentials. Some of them can be perceived as relatively less harmful – such as accounts on entertainment platforms and services mentioned above. Dark marketplaces offer a range of documents such as ID cards, passports, and credit card information. Darknet markets are surprisingly well-regulated, with complex systems of vendor verification, user reviews and quality control. This ensures that only the most reliable cybercriminals achieve success on the Dark Web and makes credit card fraud a well-organized operation at every level. During a data breach or Magecart style attack, millions of records can be stolen.
Instead of offering a wide selection of drugs for sale as a ‘physical good’ for sale, this section of the market features counterfeited documents and items (e.g. cigarettes), weapons, and a limited supply of LSD tabs and prescription drugs. Clonazepam and LSD tabs are allegedly shipped from Europe, a handgun offered for $10,200 USD, and fake tax certificates and bank cards were advertised from various international government and financial institutions. Listings under the service business category include social engineering, penetration testing, fraud technologies, private detectives, internet tracking avoidance and privacy, and methods for money laundering.
Darknet markets possess unique features that distinguish them from traditional online marketplaces:
The move has left customers, observers and dealers wondering whether Dream’s closure could mark a shift in the way the dark web is used to buy and sell drugs. There is talk of a mysterious new and yet-to-open partner site, but many are wondering whether this could be a honeypot devised by the authorities. Credit card information theft using a small device attached to a credit card transaction machine, which harvests the sensitive card data when transaction occurs. Otherwise known as SIM Splitting, port-out scam, or simjacking; Form of identity theft where a cybercriminal takes over the mobile phone account of its victim by assigning the mobile number to a new sim card. The onion services related to ransomware threat actors, where victims are announced and data is leaked. Also known as money mules; People that help conceal the identity of a cybercriminal by assisting in fraud by moving money illegally on their behalf.
Perhaps our most interesting finding is that darknet markets’ transaction activity appears to be less influenced by the ebbs and flows of the cryptocurrency markets and other forms of seasonality compared to other services. The graph above shows a comparison of total Bitcoin transaction volume between darknet markets and three other types of services over the course of 2019. While all categories see spikes in July around the same time as a Bitcoin price surge, darknet markets exhibit a much less dramatic spike than the others. Looking across the entire year, darknet markets’ transaction activity remains within a much narrower volume range, suggesting that customer behavior is less influenced by changes to Bitcoin’s price.
- User-to-user (U2U) pairs are represented by arrows (direction indicates the flow of Bitcoin) and by their respective users.
- The highest observed mean price is for metals, including collectible gold and silver coins or bullions, while the lowest is for sunglasses.
- 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.
- The dark marketplaces we considered were heterogeneous in many ways and 24 of them were closed abruptly due to police raids and scams.
A similar analysis showed that of more than 110 darknet drug markets that were active during 2010–2019, just ten remained fully operational in 2019. Most of them were only started in 2018, and almost all of those that became major darknet markets had disappeared by December 2020. Without intervention from law enforcement, the dynamic and resilient darknet market ecosystem could have grown even faster over the past decade. But major law enforcement operations have led to the dismantling of a number of darknet platforms, including AlphaBay, which we mentioned at the beginning of this piece when talking about the “Fentmaster” case. CipherTrace researchers are currently monitoring over 35 active darknet markets. The newest darknet markets – both launched around early September – are Invictus Market and Lime Market.
- Privacy and Anonymity: Transactions often use cryptocurrencies like Bitcoin to enhance the anonymity of buyers and sellers.
- Decentralization: Darknet markets can be less regulated than conventional e-commerce platforms, giving rise to a wide range of products.
- Access Restrictions: Accessing these markets typically requires specific software (e.g., Tor) to mask users’ IP addresses and locations.
- Escrow Services: Many darknet markets utilize escrow agreements to protect both buyers and sellers, ensuring that funds are only released when both parties are satisfied with the transaction.
Common Products and Services
Darknet markets commonly feature a variety of items and services, including:
- Illegal Drugs: Narcotics are the most frequently traded items on darknet markets.
- Stolen Data: This can include personal information, credit card details, and login credentials.
- Counterfeit Goods: Products like fake passports, currency, and brand name items can be found.
- Hacking Services: Many markets offer hacking services to malicious actors.
Risks and Concerns
While the anonymity of darknet markets can seem appealing, users face significant risks:
- Legal Issues: Engaging in illegal transactions could lead to criminal charges.
- Fraud: Many buyers fall victim to scams where they do not receive their purchases.
- Malware: Users may unintentionally download malicious software.
Popular Darknet Markets
Some well-known darknet markets include:
- Silk Road: The original and most infamous darknet market, closed by authorities in 2013.
- AlphaBay: A prominent market that was closed in 2017 but highlighted the scale of darknet trade.
- Empire Market: One of the largest markets after the fall of AlphaBay.
Frequently Asked Questions (FAQs)
What is the purpose of darknet markets?
Darknet markets primarily facilitate the exchange of illicit goods and services while providing anonymity to users involved in these transactions.
How do you access a darknet market?
Access typically requires the Tor browser, which anonymizes users’ IP addresses, allowing them to browse the darknet without revealing their identity.
Are darknet markets safe to use?
While some may claim to be secure, using darknet markets carries significant risks, including potential legal repercussions and exposure to fraud.
Can law enforcement track transactions on darknet markets?
While darknet technology improves privacy, law enforcement agencies have developed tools to track illicit activity and can gather evidence against users involved in illegal transactions.
In conclusion, understanding what does darknet market mean involves recognizing its complex characteristics, the risks involved, and the notable features that make it distinct from conventional online marketplaces. Users must be cautious and informed about the potential consequences of engaging with such platforms.
