Online Drugs Trade Needs Surgical Strikes
October 25, 2016
Despite shutdown of Silk Road by the FBI in 2013, online drug trade through Dark Net is thriving. Only military-precision like surgical strikes on vendors and marketplaces using technological methods can solve this problem.
RAND Corporation in its research papaer titled Taking Stock of the Online Drugs Trade says that –
Illegal drug transactions on cryptomarkets have tripled since 2013, with revenues doubling. But at $12-21 (€10.5-18.5) million a month, this is clearly a niche market compared to the traditional offline market, estimated at $2.3 (€2) billion a month in Europe alone.
The primary goal of the research paper was to determine first, the size and scope of cryptomarkets and second, to device avenues for law enforcement agencies to intervene these illegal practices. Though the report covered the entire Europe, the role of Netherlands, in particular, was studied in this report. This was owing to the fact that Netherlands has the highest rate of consumption of drugs acquired using cryptomarkets.
Some interesting findings of the report include –
- Though revenues have doubled, drug cryptomarkets are still niche and generate revenues of $21 million/month as compared to $2.1 billion in offline trade.
- Cannabis still is the most in demand followed by stimulants like cocaine and ecstasy-type drugs
- Vendors from US, Australia, Canada and Western Europe dominate the online marketplace
Apart from following the conventional methods of disrupting the drug trade (dismantling logistics, undercover operations, and taking down marketplaces), the only new method suggested includes the use of Big Data techniques.
Cryptomarkets are going to thrive, and the only way to tackle this threat is by following the money (in this case, the cryptocurrencies). But who is going to bell the cat?
Vishal Ingole, October 25, 2016
Sponsored by ArnoldIT.com, publisher of the CyberOSINT monograph
Dark Web Drug Merchant Shiny Flakes Fesses Up
July 14, 2016
Authorities know a bit more about how criminals buy and sell drugs on the dark web, thanks to the cooperation of a captured dealer. DarknetPages’ article, “Dark Web and Clearnet Drug Vendor ‘Shiny Flakes’ Confessed his Crimes,” reveals that the 20-year-old Shiny Flakes, aka Maximilian S., was found with a bevy of illegal drugs, cash, and packaging equipment in his German home. Somehow, the police eventually convinced him to divulge his methods. We learn:
“[Maximilian] actually tried to make money on the internet legally in 2013 by copying fee-based pornographic websites. The thing is that the competition was pretty strong and because of that, he abandoned his idea soon after. So instead of spending the 2 thousand EUR he had at the time on porn, he thought it would be a better idea to spend it on drugs. So he went on to purchase 30 g of cocaine and shrooms from a popular German darknet market dealer and then sold them for a higher price on the dark web….
“Shiny Flakes was really worried about the quality of the drugs he was selling and that is why he always kept an eye on forum posts and read everything that his buyers posted about them. In fact, he took things beyond the opinions on the dark web and actually sent the drugs for testing. The tests conducted were both legally and illegally, with the legal tests taking place at Spain’s Energy Control or at Switzerland’s Safer Party. However, it seems that Maximilian also got in touch with the University of Munich where his products were tested by researchers who were paid in cocaine.”
Sounds efficient. Not only was Mr. Flakes conscientious about product quality, he was also apparently a hard worker, putting in up to 16 hours a day on his business. If only he had stayed on the right side of the law when that porn thing didn’t work out. To give him credit, Flakes had every reason to think he would not be caught; he was careful to follow best practices for staying anonymous on the dark web. Perhaps it was his booming success, and subsequent hiring of associates, that led to Shiny Flakes’ downfall. Whatever the case, authorities are sure to follow up on this information.
Cynthia Murrell, July 14, 2016
Sponsored by ArnoldIT.com, publisher of the CyberOSINT monograph
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