Drug Markets on the Dark Web

The everyday use of the World Wide Web has allowed an easy engagement with various global services. For example, electronic commerce (e-commerce) is a highly developing sector with an estimated 2.3 trillion US dollars in worldwide sales per year. In spite of the countless legal tangible products and services offered by vendors and manufacturers, illegal platforms have also expanded online. The most worrying for international authorities is the Dark Web, and specifically the markets that exist on this hidden part of the internet. Dark markets (also known as DNMs) are commercial websites on the Dark Web that work via networks such as TOR, I2P, and Freenet. Precisely, the Dark Web consists of markets that have to do with drugs, human trafficking, firearms, child sexual abuse material, assassinations, cyber-arms, counterfeit products, and other disturbing activities. In the last few years, law enforcement authorities and police agents have put massive efforts...

Drug markets’ ecosystem

The increasingly sophisticated, user-friendly, and impersonal global network of drug markets make the illegal drug trade a dynamic area that is subject to fast changes, with marketplaces appearing and disappearing on a regular basis. These drug markets host hundreds—or, in some cases, thousands—of individuals who sell drugs, commonly known as vendors. The Dark Web offers significant anonymity for both vendors and buyers, who use digital currencies such as Bitcoin to process transactions.

The first drug transaction on the internet is believed that it took place during the 1970s. According to reports, it involved students who exchanged cannabis at the Massachusetts Institute of Technology (MIT) and Stanford University. Since that year, drugs have been sold digitally in both small and large volumes. In the late 1990s, discussion forums and groups, related to the manufacture and use of drugs, have also appeared online. One of the most widely...

What enables transactions between buyers and sellers

Anonymization services, such as TOR, enable users to hide, meaning that they can browse the internet without revealing their personal identification details. Additionally, specific services allow websites to be anonymously hosted by hiding the servers’ location—a feature known as hidden services. Because of these characteristics, dark markets can sell illegal products in an open fashion, providing a highly anonymous comfort to their users. While anonymization services have largely been recognized for illegal, often criminal reasons, their original purpose was different. There are many permissible and legal purposes for which citizens may wish to use these hidden services—for example, news leaks, whistleblowing, anonymous browsing, and many others.

In the last few years, there has been a dramatic expansion in the sale of various illegal substances on the Dark Web drug markets, with online sales estimated to...

Ways law enforcement, the private sector, and the public fight Dark Web drug markets

The development and accessibility of anonymization tools, the emergence of a new tech-savvy generation, the development and accessibility of hidden drug markets, the evolution of cryptocurrencies, and—most importantly—the continued global demand for illicit drugs are all expected to contribute to the exponential growth of drug markets. The value of Dark Web drug marketplaces and the incentives to engage in supply are factors why drug markets will continue to expand. Efforts to create alternative, risk-free (or low-risk) transaction chains will continue to be driven by the criminalization of the trade. This section highlights the major approaches that are being used by law enforcement, the private sector, and the community to identify and stop drug trafficking on the Dark Web:

Figure 3.4 – Modes of detection and intervention

Drug activity conducted...

The impact of the Dark Web on drug trafficking

Although individual drug markets typically don’t last very long, the industry as a whole has overcome a number of obstacles such as law enforcement intrusions and exit scams. However, since the shutdown of Silk Road, transactions have tripled, and earnings have increased by half, despite the fact that the amount of the drug trade on Dark Web platforms is still quite tiny compared to offline trading. While decreasing many of the risks connected with offline markets (such as violence), the internet has provided chances for drug entrepreneurs to develop new business models and access a new user base while also introducing new risks (for example, postal interception and scams). The following screenshot presents the lifetimes of some specific marketplaces as well as the reasons behind their closures (Goldsmith, 2020):

Figure 3.5 – Lifetimes of specific Dark Web drug markets (Rusnac et al., 2020)

Vendors...

Summary

Drug markets on the Dark Web offer consumer incentives and protection that are not available in regular street markets. The literature implies that the drug industry will continue expanding into virtual spaces since these incentives are mostly responsible for determining buyer motivation. Law enforcement faces considerable difficulties in identifying, controlling, and closing down these markets. Governmental agencies, civil society, academia, the commercial sector, regional police organizations, and international law enforcement must all keep researching and expanding their knowledge on Dark Web drug markets. The next chapter discusses the impact that Dark Web child pornography has on society.