A distributed resilience among darknet markets?

by Martin Dittus 09/11/2017

The actions by law enforcement were deliberately structured to seed distrust in illicit trading platforms. Did this effort succeed?

by Martin Dittus 09/11/2017

You may have seen the news earlier this year that two large darknet marketplaces, Alphabay and Hansa, have been taken down by international law enforcement. Particularly interesting about these takedowns is that they were deliberately structured to seed distrust among market participants: after Alphabay closed many traders migrated to Hansa, not aware that it had already covertly been taken over by the police. As trading continued on this smaller platform, the Dutch police and their peers kept track of account logins, private messages, and incoming orders. Two weeks later they also closed Hansa, and revealed their successful data collection efforts to the public. Many arrests followed. The message to illicit traders: you can try your best to stay anonymous, but eventually we will catch you. By coincidence, our small research team of Joss Wright, Mark Graham, and I had set out earlier in the year to investigate the economic geography of darknet markets. We had started our data collection a few weeks earlier, and the events took us by surprise: it doesn’t happen every day that a primary information source gets shut down by the police. While we had anticipated that some markets would close during our investigations, it all happened rather quickly. On the other hand, this also gave us a rare opportunity to observe what happens after such a takedown. The actions by law enforcement were deliberately structured to seed distrust in illicit trading platforms. Did this effort succeed? Let’s have a look at the data. The chart above shows weekly trading volumes on darknet markets for the period from May to July 2017. The black line shows the overall trading volume across all markets we observed at the time. Initially, Alphabay (in blue) represented a significant share of this overall trade, while Hansa (in yellow) was comparably small. When Alphabay was closed in week 27, overall sales dropped: many traders lost their primary market. The following week,…

Economics, Interviews

Introducing Martin Dittus, Data Scientist and Darknet Researcher

by David Sutcliffe 13/09/2017

Martin Dittus is a Data Scientist at the Oxford Internet Institute. The stringent ethics process governing his research means he currently can’t even contact anyone on the marketplace.

by David Sutcliffe 13/09/2017

We’re sitting upstairs, hunched over a computer, and Martin is showing me the darknet. I guess I have as good an idea as most people what the darknet is, i.e. not much. We’re looking at the page of someone claiming to be in the UK who’s selling “locally produced” cannabis, and Martin is wondering if there’s any way of telling if it’s blood cannabis. How would you go about determining this? Much of what is sold on these markets is illegal, and can lead to prosecution, as with any market for illegal products. But we’re not buying anything, just looking. The stringent ethics process governing his research means he currently can’t even contact anyone on the marketplace. [Read more: Exploring the Darknet in Five Easy Questions] Martin Dittus is a Data Scientist at the Oxford Internet Institute, and I’ve come to his office to find out about the OII’s investigation (undertaken with Mark Graham and Joss Wright) of the economic geographies of illegal economic activities in anonymous Internet marketplaces, or more simply: “mapping the darknet.” Basically: what’s being sold, by whom, from where, to where, and what’s the overall value? Between 2011 and 2013, the Silk Road marketplace attracted hundreds of millions of dollars worth of bitcoin-based transactions before being closed down by the FBI, but relatively little is known about the geography of this global trade. The darknet throws up lots of interesting research topics: around traffic in illegal wildlife products, the effect of healthcare policies on demand for illegal prescription drugs, whether law enforcement has (or can have) much of an impact, questions around the geographies of trade (e.g. sites of production and consumption), and the economics of these marketplaces—as well as the ethics of researching all this. OII researchers tend to come from very different disciplinary backgrounds, and I’m always curious about what brings people here. A computer scientist by training, Martin first worked as a software developer…

Economics

Exploring the Darknet in Five Easy Questions

by David Sutcliffe 12/09/2017

We caught up with Martin Dittus to find out some basics about darknet markets, and why they’re interesting to study.

by David Sutcliffe 12/09/2017

Darknet marketplaces are typically set up to engage in the trading of illicit products and services, and are considered criminal in most jurisdictions. Image: Dennis Yip (Flickr).

Many people are probably aware of something called “the darknet” (also sometimes called the “dark web”) or might have a vague notion of what it might be. However, many probably don’t know much about the global flows of drugs, weapons, and other illicit items traded on darknet marketplaces like AlphaBay and Hansa, the two large marketplaces that were recently shut down by the FBI, DEA and Dutch National Police. We caught up with Martin Dittus, a data scientist working with Mark Graham and Joss Wright on the OII’s darknet mapping project, to find out some basics about darknet markets, and why they’re interesting to study. Firstly: what actually is the darknet? Martin: The darknet is simply a part of the Internet you access using anonymising technology, so you can visit websites without being easily observed. This allows you to provide (or access) services online that can’t be tracked easily by your ISP or law enforcement. There are actually many ways in which you can visit the darknet, and it’s not technically hard. The most popular anonymising technology is probably Tor. The Tor browser functions just like Chrome, Internet Explorer or Firefox: it’s a piece of software you install on your machine to then open websites. It might be a bit of a challenge to know which websites you can then visit (you won’t find them on Google), but there are darknet search engines, and community platforms that talk about it. The term ‘darknet’ is perhaps a little bit misleading, in that a lot of these activities are not as hidden as you might think: it’s inconvenient to access, and it’s anonymising, but it’s not completely hidden from the public eye. Once you’re using Tor, you can see any information displayed on darknet websites, just like you would on the regular internet. It is also important to state that this anonymisation technology is entirely legal. I would personally even argue that such…