Understanding Darknet Drug Markets
The term darknet drug markets refers to online platforms that operate on the dark web, enabling users to buy and sell illicit drugs and other illegal goods and services. These markets are often hidden from conventional search engines and require specific software, such as Tor, to access.
Characteristics of Darknet Drug Markets
Darknet drug markets possess unique characteristics that differentiate them from surface web marketplaces:
In Georgia, on its southern border, where more than 100,000 Russians have fled, there is Matanga, a local Russian-speaking darknet market offering the same “treasure hunt” buying system as back home. Moreover, threat actors offer ransomware and stealers “as a service” in these markets. It took almost no time for the void left by Hydra to be filled, and dozens of new illicit markets emerged. These DWMs, mostly Russian-speaking, have repopulated 80% of the entire illegal ecosystem.
- Anonymity: Transactions often utilize cryptocurrencies like Bitcoin, which help maintain user anonymity.
- Decentralization: Many markets are decentralized, meaning they do not rely on a single server or authority.
- Escrow systems: Payments are typically held in escrow until the buyer confirms receipt of their order, enhancing trust between parties.
- User feedback: Platforms may include rating systems, allowing users to review sellers, which adds a layer of accountability.
Vendors on these markets use clever marketing tactics to attract buyers, including offering free samples and discounts for bulk purchases. Darknets and dark markets have propelled the growth of cybercrime by offering a platform for the sale and exchange of malicious tools and services. Cybercriminals use these platforms to traffic in stolen data, execute targeted ransomware attacks, and collaborate on advanced hacking techniques. Nation-state actors, too, leverage darknets for espionage and cyber warfare, capitalizing on the obscurity and untraceability they provide. “The earliest modern online anonymous markets, often referred to as darknet markets or cryptomarkets, appeared in early 2010, and evolved from an encrypted email service and migrated on to a Tor anonymity network to guarantee better anonymity to users. The first darknet market of notoriety was Silk Road, which opened at the end of January 2011 and was seized by the FBI in October 2013.
Joker’s Stash Market and UNICC — two of the only markets to maintain steady popularity through the entire time period measured — are the best examples one popular market category known as card shops, which specialize in sales of stolen credit card information. The following month RuTor retaliated, hacking WayAway and posting screenshots of the breach, arguing that WayAway’s security was too weak to be trusted. Days later RuTor was targeted for another round of cyber attacks, this time by Killnet. Amid the cyber warfare between those vying to succeed Hydra, Russia’s drug trade, most of it orchestrated via darknet marketplaces continues almost in plain sight. Even Stealer as a service (SaaS), one of the most recent cyber attack vectors, has taken its place in black markets.
The U.S. Treasury Department announced sanctions Tuesday against the Hydra market and Garantex, a virtual currency exchange based in Russia. A cybercrime research firm, Elliptic, said the products were advertised for sale in Russia, Ukraine, Belarus and Kazakhstan. These sanctions are an attempt by the Biden administration to show that virtual currency will not be able to evade U.S. and international sanctions on Russia or other criminal actors. Deaths caused by synthetic opioids like fentanyl increased to 71,238 in 2021, up from 57,834 in 2020, according to the Centers for Disease Control and Prevention (CDC). More than 564,000 people died from opioid-involved overdoses between 1999 and 2020, according to the CDC. Beginning in 2019, the marketplace was victimized daily by DDoS attacks that slowed down its servers and damaged the customer experience, resulting in significant lost revenue.
It began operation in July 2020 but was almost non-existent in the darknet market before the downfall of Hydra. Much of the decline was attributed by researchers at blockchain analysis firm Chainalysis to the shutdown of Hydra Market, which was taken down by law enforcement agencies in Germany and the U.S. in April 2022. Even with that shutdown, Hydra Market led the way for 2022 as the highest-earning darknet market.
ThreatBites 05 – Improving Phishing Campaigns With OSINT
How Darknet Drug Markets Operate
Particl.io offers a similar marketplace with its own coin and wallet infrastructure. OpenBazaar, for instance, only has between 10 and 20 vendors with substantial traction, while the most popular markets have hundreds. Anecdotally, we believe the low adoption is because OpenBazaar and Particl.io are harder to use than standard darknet markets, but both would present new challenges to law enforcement if they gained popularity.
Finally, immediate feedback on the payment outcome adds an ultimate confirmation to the customer regarding the payment. Compliant financial institutions, crypto exchanges, and other platforms that facilitate crypto transactions also use blockchain analytics tools to monitor and potentially block transactions flowing to or from darknet marketplaces. After Silk Road was shut down by law enforcement, many other markets proliferated, sparking rounds of innovation and disruption between market administrators and law enforcement [18]. Disruption tended to demonstrate the resilience of the illicit drug market ecosystem [19]. Law enforcement takedowns of cryptomarkets stimulated a process of reconfiguration in the market [20•].
To understand what are darknet drug markets, one must also consider their operational mechanisms:
- Access: Users must download software like Tor to access the dark web.
- Registration: Most markets require users to create accounts, often without personal information.
- Product Listings: Sellers list drugs with descriptions and prices, often featuring images.
- Transaction Process: Buyers browse listings, select products, and complete purchases using secured payment methods.
Popular Darknet Drug Markets
- Dark web vendors sell stolen personal identifying information (PII), stolen credit card numbers with verification codes, fraudulent bank accounts, and fraud software.
- “Some people believe they are performing a service by experimenting with these drugs and going online and writing about their experience,” she said.
- The downfall of the Darknet drug empire is marked by high-profile busts and legal actions—a testament to the unwavering commitment of those safeguarding the digital frontier.
Several well-known darknet drug markets have emerged over the years. Some of these include:
- Silk Road: One of the first and most notorious darknet markets, which was shut down in 2013.
- AlphaBay: A dominant market that was seized in 2017; it offered a wide range of products.
- Dream Market: A notable user-friendly site that operated until it closed in 2019.
The Risks Involved
Engaging with darknet drug markets comes with significant risks:
- Legal risks: Users face potential legal consequences, including arrest and prosecution.
- Fraud: The risk of scams or receiving low-quality goods is high.
- Cybersecurity threats: Users may fall victim to hacking, data breaches, and malware.
FAQs
What types of drugs can be found on darknet drug markets?
Various substances, including cocaine, heroin, methamphetamines, and prescription medications, can be found on these markets.
How do law enforcement agencies combat darknet drug markets?
Law enforcement agencies employ various strategies, including undercover operations, tracking cryptocurrency transactions, and targeted seizures, to dismantle these markets.
Is it safe to buy from darknet drug markets?
While some buyers report successful transactions, darknet drug markets are inherently risky due to scams, legal repercussions, and the nature of the products involved.
How do users ensure their anonymity while buying on the darknet?
Users often utilize VPNs, anonymized wallets, and carefully manage their online footprints to maintain anonymity while engaging in transactions.
Conclusion
Darknet drug markets represent a complex intersection of technology, law, and illegal trade. Understanding what they are and how they operate is crucial in addressing the challenges they present to law enforcement and society at large.
