An Examination of the Products and Pricing for Physical and Digital Goods in Online Illicit Markets

• In Event: Exploring the Cybercrime Economy: New Themes and Methods in the Study of Cybercrime

Abstract

Research over the last decade has begun to examine the practices of illicit markets for goods operating on both the Open and Dark Web. These studies largely focus on one product type only, such as stolen personal information, drugs, or hacking tools, and utilize one type of advertising space, whether forums or shops. Few have examined the proportion of ads related to each of these product types, or the commonalities evident in product advertisements, pricing, or delivery methods. This study attempts to address this gap in the literature through a quantitative examination of advertisements for all manner of physical and digital products offered in underground markets via the Open and Dark Web. Utilizing a sample of ads taken from over 100 forums and shops, this study will explore the proportion of products that can be ascribed to either physical goods (e.g. guns, drugs, currency, identity documents) or digital products (e.g. stolen data, hacking tools), and the price points for these goods across vendors. The method of payment, product distribution, and dispute resolution will also be considered to assess the overall mechanics by which goods are bought and sold regardless of advertising environment. The implications of this study for our understanding of illicit market operations will be discussed in detail.

Authors

• Thomas Holt, Michigan State University

• Jin R. Lee, Michigan State University

• Olga Smirnova, East Carolina University