A recent research report by The Conversation demonstrates that, much like many legal commodities, stolen products are distributed via a supply chain that includes producers, wholesalers, and consumers. However, this supply chain entails links of several criminal organizations, operating in an illicit underground marketplace.
Producers, Wholesalers, and Distributors
This supply chain of compromised data begins with the inclusion of a producer, i.e. a hacker or a threat group, who gains unauthorized access to vulnerable systems and steals sensitive information. The stolen data may include credit card numbers, bank account information, social security number, etc.
The stolen data is then advertised by wholesalers and distributors, in order to trade the data.
In the end, a consumer may purchase the stolen data. This data is utilized in order to commit cybercrime activities, or scams like fraudulent credit card transactions, identity thefts, or phishing attacks.
This trade of stolen data between producers, wholesalers, and consumers is reportedly carried out in the darknet markets, which are illicit websites, imposing as legitimate e-commerce websites, except they are accessible only when operated through a special browser or authorization codes.
According to reports, several thousand sellers were found selling tens of thousands of stolen data products, on just 30 darknet markets. Over an eight-month period, these data retailers have generated a whopping sum of $140 million or more in sales.
Darknet Markets:
Darknet markets offer a platform for sellers to get in touch with potential customers to aid transactions, much like any conventional e-commerce website. However, darknet markets are well-recognized for selling illegal products. Another significant distinction is the need for specialized software, such as the Onion Router, or TOR browser, which offers security and anonymity to the user, to access darknet markets.
Renowned darknet market, Silk Road came to light in the year 2011 by apparently combining TOR and bitcoin. Later, in 2013, the market was eventually seized, with the founder, Ross Ulbricht being sentenced to two life sentences plus an additional 40 years of imprisonment without the chance of parole. The severe prison term given to Ulbricht did not have the anticipated deterrent impact. To fill the void, numerous markets developed, which led to the development of a robust ecosystem that profited from stolen personal data.
Taking into consideration how major a role the darknet market plays in trafficking stolen data, the study conducted the largest systematic examination of stolen data markets, in order to better comprehend the extent of the illegal darknet ecosystem. The study first examined 30 darknet markets, which advertised stolen products.
Further information was deciphered about the stolen products of the market in the course of a week for eight months, from September 1, 2020, through April 30, 2021. The information extracted from this scrutiny was utilized to determine the number of vendors trading the stolen products, the number of stolen data products advertised, the number of products sold and the amount of revenue generated.
The study, after evaluating the ecosystem's overall characteristics, analyzed each market separately. In doing so, it was discovered that a small number of markets were in charge of selling the majority of the stolen data items. Apollon, WhiteHouse, and Agartha were the three biggest markets, accounting for 58% of all sellers. The total number of sales ranged from 0 to 237,512, and the number of listings ranged from 38 to 16,296. During the 35-week period, there were significant variations in each market's total revenue, which ranged from $0 to $91,582,216 for Agartha, the most successful of all markets mentioned.
Darknet Stolen Data Marketplaces
The research done by The Conversation sheds like on the booming underground economy and illicit supply chains of stolen data, that are being operated in the darknet markets. For as long as the data continues to be stolen, there is a possibility of an upsurge of marketplaces to trade the stolen information.
While the darknet markets could not be possibly taken down directly, efforts to prevent the customers from utilizing the stolen data offer some hope in the picture. One way to do this is, by utilizing the advancement of A.I. technology, which can provide law enforcement agencies, financial institutions, and others with the information required to prevent data from being stolen, or stolen data utilized for cybercrime activities.
This would further halt the flow of stolen data in supply chains, eventually disrupting the underground economy that is largely benefitting from your personal information.
