Within the internet lies a hidden layer called the dark web which requires specific methods for access. Within this hidden realm, dark web marketplaces operate as platforms for various illicit activities. However, there are also encrypted marketplaces offering illegal activities on platforms such as Facebook or Telegram. It is crucial to understand these marketplaces, their unique characteristics, and the dangers they pose particularly for vulnerable financial institutions.
Understanding the Dark Web
The internet is commonly divided into three parts:
Dark web marketplaces are online platforms where users trade illegal goods and services. They operate like regular online stores but sell illicit items, such as drugs, weapons, personal data, counterfeit goods, and illegal services like hacking or hitmen for hire. An example is shown in Figure 1.
Figure 1: A dark web marketplace selling or giving out private information from different institutions, including financial.
Encrypted marketplaces are online platforms that utilize robust encryption to maintain user privacy while enabling the buying and selling of goods and services. Unlike traditional online stores, these platforms often facilitate transactions involving illegal items and services, and they can be accessed through popular platforms like Facebook or Telegram making them easier to enter and use compared to dark web marketplaces. They include similar illicit goods and services offered at dark web marketplaces. An example is shown in Figure 2.
Figure 2: The left image shows a Telegram group selling stolen checks. The right image shows a group on Facebook selling bank loads and CVV deals.
How Are Dark Web Marketplaces Different from Encrypted Marketplaces?
While both dark web and encrypted marketplaces use encryption to protect user privacy, their purposes and operations are distinct:
The dark web is accessed by experienced internet users, unlike encrypted marketplaces. Since encrypted marketplaces are more accessible to the average person, this accessibility can lead to real-world consequences, affecting users on mainstream platforms unknowingly.
The Impact on Financial Institutions
Illegal activities on encrypted marketplaces can have significant impacts on financial institutions:
Maintaining Online Safety
Understanding these marketplaces highlights the importance of being cautious online. Here are some tips for smaller institutions to protect themselves:
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