Dynamics of Dark Web Financial Marketplaces: An Exploratory Study of Underground Fraud and Scam Business

• In Event: The Digital Underground Business and Online Safety (Organized by Korean Society of Criminology in America (KoSCA) & Sponsored by the Division of Cybercrime (DC))

Abstract

In recent years, the number of dark web financial marketplaces where dark web users and sellers actively trade illegal goods and services anonymously has grown exponentially. With the expansion of the dark web, criminal enterprises have been able to expand their illegal activities through selling products ranging from stolen credit cards to hacked cryptocurrency accounts. This study aims to identify the characteristics of the Dark web financial market and its scams. The data are derived from leading dark web financial websites, such as Hidden Wiki, Onion List, and Deep Dot Web, using the major dark web search engines. The process of offering promotions and services with cryptocurrency payment methods is similar to the e-commerce market of the surface web. These findings suggest that Dark Web financial markets may harbor scams that target Dark Web buyers. Dark web sellers construct a website to sell scam products and recommend purchasing Escrow services to ensure safe transactions as an additional scam. Enhancing law enforcement capabilities of investigating financial marketplaces and promoting public awareness and consumer safety programs are discussed as effective preventive measures.

Authors

• Bo Ra Jung, Boston University

• Kyung-Shick Choi, Boston University

• Claire Seungeun Lee, University of Massachusetts Lowell