Encryption And Security
Understanding Tor Darknet Markets
Darknet markets have allowed cybercriminals, fraudsters and criminals who trade in weapons, drugs and illegal products to trade without much concern of getting caught due to the anonymity provided by the deep-web. It is imperative to have an understanding on how these criminals operate and the type of information being traded to better secure ourselves. Darknet markets are websites which are hosted on the deep-web and can be accessed typically using the Tor network. The products sold on darknet markets are a major source of concern for law enforcement agencies and governments worldwide. These markets are thriving black markets that operate on the dark web, where vendors can sell illegal products and services anonymously.
What may not always be considered is that employees may be using the DarkNet to distribute information and conceal their communications. A disgruntled employee could distribute secret trade information of their employer, without the employer having any way of tracing the perpetrator. As an article in the New York Times put it “when a communication arrives from Tor, you can never know where or whom it’s from.” (New York Times Magazine, 17 December 2010). This is a risk which is potentially unknown, or at least misunderstood, by most organisations. Wang, Q. Sun, Y. Zhou, S. Shen, A study on influential user identification in online social networks, Chin. Van Laar, P. van der Pol, Purity, adulteration and price of drugs bought on-line versus off-line in the Netherlands, Addiction 112 (4) (2017) 640–648.
“Really the only things that are viable to transact on the dark web are things that are easily transferrable and have repeat customers, so digital goods and things that can be popped into the mail like small quantities of drugs,” Ormsby said. “Anything not easily transferrable there’s not a big market for. There are weapons markets, but they are very, very tiny and very few transactions successfully made on the weapons markets.” When the dark web entered public consciousness in the early 2010s, it was widely treated as the sinister underbelly of the internet. On the dark web, anything goes, whether it be illegal drug sales, hacker forums, or things much, much darker. Its extra layer of encryption has afforded protection to activists in oppressive regimes fighting for civil rights and free speech. SecureDrop has been used by journalists to communicate with anonymous sources, and encrypted email service ProtonMail developed by MIT and CERN is another well-known denizen of the darknet.
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. The hacking claim may be true, as the alleged rogue employee posted vendors’ mnemonic sequences — random series of words vendors could enter to recover their passwords — which several vendors then confirmed were correct. The hacker also posted screenshots of Nightmare’s backend, such as its user analytics and financial data.
The Tor darknet markets operate within a unique ecosystem that functions entirely on the anonymity provided by the Tor network.
Fraud shops are a unique segment of darknet markets that sell stolen data such as compromised credit card information and other forms of personally identifying information (PII) that can be used for fraudulent activity. This decline was triggered in part by the closure of prominent fraud shops like Bypass Shop, which was shut down in March. Brian Dumps, the biggest overall fraud shop for the year, also appears to have suffered a disruption as its revenue fell almost to zero in October, though it’s unclear exactly why. Seized and dark market counterfeits mostly seem to originate from China and Hong Kong. However, some uncertainty surrounds the information about the origins of dark market counterfeits since providing this information is voluntary, and a large portion is undeclared (see Limitations).
While there are risks of a shutdown, these single-vendor sites are seen as a smaller priority for law enforcement in comparison to the larger marketplaces. In 2015, drug-related products accounted for 70% of total sales in darknet markets. Could you just list out these dark web marketplaces and ask your security team to keep an eye on them?
- The term HS shall refer to the DNM and websites on Tor dark web that deal with illicit drugs.
- Because of the the dark web’s almost total anonymity, it has been the place of choice for groups wanting to stay hidden online from governments and law enforcement agencies.
- For the purposes of this article, SearchSecurity examined well-known .onion markets and websites (barring those with more extreme content).
- The harm score is then used to generate the overall rankings of the HS on the Tor dark web dataset.
These markets are platforms where users can buy and sell a variety of goods and services, often illegal in nature. They have gained significant attention due to their ability to facilitate transactions without revealing the identities of the participants.
How Tor Darknet Markets Work
To navigate these markets, users must follow specific steps to ensure their privacy and security:
- Download Tor Browser: This specialized browser allows users to access .onion websites where darknet markets are hosted.
- Create a Wallet: Most transactions occur in cryptocurrencies, so users need a secure wallet.
- Find Marketplaces: Users typically find links to Tor darknet markets through forums or specific directories.
- Register an Account: Creating an account may involve additional security measures, including two-factor authentication.
- Start Shopping: Users can explore various categories of products, making purchases discreetly.
Hidden services can operate while keeping the physical location of the server hidden, which makes tracking and shutting them down considerably more challenging. To access darknets, users typically need to download and configure the Tor Browser; a modified version of Mozilla Firefox that routes all traffic through the Tor network. This browser enables access to websites with .onion domain extensions, which are specific to the Tor network.
By reviewing the logs of those servers, they were able to get some of the Bitcoin addresses the dealer used under his Malvax alter ego, and used Chainalysis to trace some of them back to a regulated exchange headquartered in the UK. It appears likely that Nightmare’s administrators decided to exit scam soon after the apparent hack. Nightmare market was a short-lived, moderately popular market that closed down in July 2019. Unlike other examples we’ve cited previously, Nightmare wasn’t shut down by law enforcement. Commentators have suggested “multi-sig” crypto payments — requiring multiple keys to authorize a payment — and OpenBazaar, a fully-decentralized marketplace for e-commerce transactions.
Types of Goods Available
Within Tor darknet markets, a wide range of products can be found, including:
- Illicit Drugs: A significant percentage of listings involve narcotics and controlled substances.
- Stolen Data: Credit card numbers, personal information, and login credentials are common commodities.
- Fake Documents: Passports, IDs, and diplomas can be purchased for various purposes.
- Hacking Services: Users may find services ranging from simple hacks to advanced cyber attacks.
- Weaponry: Although difficult to source, firearms and related accessories are sometimes sold.
Risks Involved
Engaging with Tor darknet markets carries numerous risks:
- Legal Consequences: Buying or selling illegal goods can lead to serious legal repercussions.
- Scams: Many vendors may not deliver products, leading to loss of funds.
- Security Threats: Using the darknet exposes users to potential hacking and data breaches.
- Exposure to Malware: Downloading files from unverified sources can infect devices with malware.
FAQs About Tor Darknet Markets
What is the primary purpose of Tor darknet markets?
The main purpose is to provide a platform for trading goods and services, often related to illegal activities, while maintaining user anonymity.
Is it safe to use Tor darknet markets?
Using these markets comes with significant risks, including the possibility of scams and legal consequences.
What currencies are commonly used?
Cryptocurrencies like Bitcoin are the primary means of transaction due to their pseudo-anonymous nature.
Can law enforcement track Tor darknet markets?
While the Tor network provides an added layer of anonymity, law enforcement agencies have become more adept at tracking activities within the darknet.
Conclusion
Tor darknet markets represent a complex and risky environment for both buyers and sellers. Understanding how these markets operate, along with the inherent dangers, is crucial for anyone contemplating involvement in this shadowy part of the internet.
