Fraudulent Markets
Understanding Active Darknet Markets
Operation Dime Store started as a HSI Chicago RAC/O’Hare investigation in summer, 2011. The operation was in response to small drug seizures taking place at the Chicago mail hub. The seizures were unusual, as shipments of that kind were not usually received through letter mail, were coming from international sources in abundance, and were being shipped all over the United States. ICE HSI opened an investigation to look into the specific source of the drugs. Once the breadth and influence of the site was ascertained, HSI’s goals were to find a way to shut down the site, intercept packages to identify vendors, identify the recipients of the shipments and make the drug seizures stop.
The category of individual and community factors includes items related to the popularity, recommendation, and reliability of the seller and the platform. Customers’ trust and propensity to buy depend on the perceived reliability of the online retailer (Thaw et al., 2009) and acceptance of the given web market (Karimov & Brengman, 2014). The reputation system consists of customer ratings, reviews of products or services purchased, number of visitors, and number of purchases.
Throughout 2022, we observed a negative relationship between funds sent to regular darknet markets and those sent to single vendor shops. For instance, we see single vendor shop revenue spike beginning around March, around the same time traditional darknet market revenue began to fall. Similarly, single vendor shop revenue fell concurrently with the recovery of traditional darknet markets from around June through end of year. Hydra Market led the way once again as the highest-earning darknet market in 2022, even though it was sanctioned by OFAC and shut down in a joint U.S.-German operation in April — no other market beat the revenue lead it built up in those four months. As we’ll explore later, the three next-highest earning markets of the year — Mega Darknet Market, Blacksprut Market, and OMG!
The term active darknet markets refers to online marketplaces that operate on the dark web, using encryption and anonymity to facilitate the buying and selling of various goods and services, often illicit in nature. These markets have gained significant attention due to their controversial nature and the challenges they pose to law enforcement.
After the Biker DLC, players can now purchase buildings for illegal drugs and counterfeit products manufacture, and distribute them through a darknet website called “The Open Road” where law enforcement cannot be notified of the player’s trade. Written by Flashpoint’s Intelligence Team, this report is also supported by research from blockchain intelligence firm TRM Labs. As we detail below, Flashpoint observed a considerable decrease in the volume of money being handled by crypto wallets linked to dark web markets. And, as we’ve previously reported, new markets have aggressively vied to take Hydra’s place—but U.S. government sanctions have so far prevented any from reaching its level in terms of breadth, reputation, and trust. As a result, threat actors have migrated elsewhere, including to forums like “RuTor,” decentralized Telegram-based shops, and even switching to offline transactions for physical commodities like narcotics.
Characteristics of Active Darknet Markets
At the same time, the takedown of Hydra Market pushed cryptocurrency cash-out providers onto other platforms. However, as long as these actors are not apprehended, the market seems to be able to heal itself and adapt. Apart from mixers and cashout services that assume new identities, new mixing services, such as “Sinbad”, used by North Korea’s Lazarus Group, also appear. This suggests some continuity in the financial infrastructure of funds leaving darknet vendors following the takedown.
Active darknet markets are distinguished by several key features:
Conversely, investigators must shift their focus as new Darknet markets appear or existing ones increase in popularity to accommodate the migration of users. This daunting and seemingly impossible task, curbing the sale of illicit goods online, will never be completed. As law enforcement tactics evolve, so do those of malicious actors on the Dark Web.
- To help you trace the illegal trade of products, cybercriminal activity, and the hottest dark web trends, we have compiled a list of the top 10 leading dark web marketplaces.
- Some darknet markets are also adopting new infrastructures to avoid shutdowns by law enforcement.
- Investigators discovered a plethora of black market goods available on Silk Road.
- However, cryptocurrencies are traceable to varying degrees; for example, Bitcoin is easier to trace than Monero (Bahamazava & Nanda, 2022).
Since then, it appears Dark0de grabbed the #1 spot, with an impressive 69,103 active listings. For information on complying with sanctions applicable to virtual currency, see OFAC’s Sanctions Compliance Guidance for the Virtual Currency Industry here. For FinCEN’s recent alert identifying red flags on potential Russian sanctions evasion attempts, including through the use of cryptocurrency, see here. As a result of today’s action, all property and interests in property of the individuals and entities described above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, 50 percent or more by one or more blocked persons are also blocked.
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. They’re typically reachable only via an anonymizing network – aka darknet – such as Tor or I2P. Most commonly, the darknet marketplaces use a form of cryptocurrency to facilitate payments. So the anonymity of these marketplaces is matched with the alleged anonymity of cryptocurrencies.
- Anonymity: Users often operate under pseudonyms, using cryptocurrencies to obscure their identities.
- Variety of Products: These markets offer a range of goods from illegal drugs to counterfeit items and hacking services.
- User Ratings: Similar to mainstream e-commerce, buyers and sellers can leave feedback, which helps establish trust and quality control.
- Security Measures: Many markets implement advanced security protocols to protect user information and transactions.
Popular Active Darknet Markets
As of 2023, several active darknet markets are gaining traction among users:
- Hydra: A Russian-language market known for its vast array of products, especially drugs.
- MarketPlace: Offers a wide variety of goods and boasts a strong reputation for user safety.
- Empire Market: Closed, but was once one of the largest, emphasizing user privacy and diverse offerings.
The Risks Involved
Engaging with active darknet markets carries inherent risks:
- Legal Consequences: Buying illegal goods can lead to serious legal repercussions.
- Fraud and Scams: The anonymity of these markets makes it a breeding ground for dishonest sellers.
- Security Risks: Users can be exposed to malware or data theft, especially on less reputable sites.
How to Access Active Darknet Markets
Accessing active darknet markets involves a few technical steps:
- Download Tor Browser: This is essential to access the dark web securely.
- Use VPN: A virtual private network adds an extra layer of security.
- Find Market Links: Links to markets are often shared on forums and other dark web platforms.
- Create a Wallet: Set up a cryptocurrency wallet for transactions.
FAQs
What are darknet markets used for?
Active darknet markets are primarily used for buying and selling illegal goods, including drugs, firearms, and stolen data.
Are all darknet markets illegal?
While many active darknet markets deal exclusively in illegal items, some may offer legal goods or services, but these are rarer.
How can one stay safe on darknet markets?
To stay safe, it’s advisable to:
- Use strong, unique passwords.
- Engage only with highly rated sellers.
- Never disclose personal information.
- Utilize anonymous payment methods.
Conclusion
Active darknet markets represent a complex ecosystem, balancing anonymity, risk, and opportunity. As technology evolves, so too will the landscape of these markets, posing ongoing challenges for users and law enforcement alike.
