Trends in Cryptocurrency and Security in Dark Web Drug Markets: How Cybercriminals Avoid Scams

• In Event: Understanding Drug Crime, Crime Reduction, and Delinquency in the Digital Age (KOSCA)

Abstract

Cryptocurrencies are widely utilized in dark web drug markets to enable anonymous transactions, but they also expose users to significant risks of scams. The increasing prevalence of exit scams, transaction scams, and phishing attacks has eroded trust and undermined the security of these marketplaces. The unstable security infrastructure of dark web sites has prompted the adoption of new features, such as walletless markets, multisignature implementations for Bitcoin and Monero, and no-JavaScript policies. This study examines trends in cryptocurrency usage and security practices in dark web drug markets, using Routine Activity Theory (RAT) as a framework to analyze emerging patterns. Data were collected from prominent dark web marketplaces using Tor and specialized search engines. Statistical and thematic analyses reveal a growing reliance on walletless payments and multisignature wallets to enhance safety and mitigate vulnerabilities. The findings highlight how cybercriminals adapt payment systems and implement security measures to maintain trust within these markets. The study emphasizes the need to strengthen law enforcement capabilities to investigate dark web transactions, particularly those involving walletless and multisignature systems. These results provide critical insights into fraud patterns in dark web marketplaces and their implications for consumer safety and regulatory measures.

Authors

• Bora Jung, University of Nevada

• Charles Sinchul Back, The University of Scranton