The Economics of Cybercrime and Security
Dark Web Markets and Crime-as-a-Service
How online black markets sell stolen data, hacking tools and services, and how specialisation has made cybercrime more efficient.
Cybercrime has developed its own markets.
What’s sold
- Stolen credentials: passwords and card details.
- Personal data from breaches.
- Malware and hacking kits.
- Botnets for rent to launch attacks.
- Access to already-hacked company networks.
Specialisation
Like legitimate industries, cybercrime benefits from division of labour:
- Some criminals write malware.
- Others break into networks and sell access.
- Others run ransomware or launder money.
Adam Smith’s insight about specialisation raising productivity applies here too.
Trust among criminals
Markets use reputation systems, escrow and reviews to build trust, similar to legitimate e-commerce.
Law enforcement
- Police have shut down major markets, such as Silk Road (2013) and Hydra (2022).
- New markets often replace closed ones quickly.
Prices
Stolen card details can sell for just a few dollars each, reflecting large supply.
A hacker breaks into a company's network but doesn't attack it. He sells the access to a ransomware gang for a fee, specialising in just one step.
Many specialise and trade services in organised markets.
- Online black markets sell data, tools and services.
- Specialisation makes cybercrime more efficient.
- Reputation systems build trust among criminals.
- Closed markets are often quickly replaced.
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