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| Dark net markets: the eBay of drug dealing | Dark net markets: the eBay of drug dealing |
| (6 months later) | |
| In 1972, long before eBay or Amazon, students from Stanford University in California and MIT in Massachusetts conducted the first ever bit of e-commerce. Using the "Arpanet" account at their artificial intelligence lab, the Stanford students sold their counterparts a small amount of marijuana. Ever since, the net has turned over a steady trade in narcotics. According to the Observer's survey 16% of current UK drug users have scored from the net and the number is growing. | |
| Just like almost every other business, drugs are moving online. And, just like almost every other business, e-commerce is faster, easier and offers great value. Within five years, the street pusher could be more or less obsolete, run out of town in the same way Amazon has hounded independent booksellers. | Just like almost every other business, drugs are moving online. And, just like almost every other business, e-commerce is faster, easier and offers great value. Within five years, the street pusher could be more or less obsolete, run out of town in the same way Amazon has hounded independent booksellers. |
| I'd never bought illegal drugs before. Unlike most of my peers, I've never even tried illegal drugs – aside from the occasional spliff in my 20s. But earlier this year an innocuous-looking white envelope was posted through my door by Royal Mail. It was about the size of a postcard, but a little bulky, and padded with bubble-wrap. It looked, felt and smelled no more suspicious than any other item of post I'd received that week. The only difference was that it contained a very small amount of high-quality cannabis. With a few simple clicks, and without leaving my home, I'd done what thousands of people have done over the past couple of years: I bought drugs from the notorious "dark net markets". | I'd never bought illegal drugs before. Unlike most of my peers, I've never even tried illegal drugs – aside from the occasional spliff in my 20s. But earlier this year an innocuous-looking white envelope was posted through my door by Royal Mail. It was about the size of a postcard, but a little bulky, and padded with bubble-wrap. It looked, felt and smelled no more suspicious than any other item of post I'd received that week. The only difference was that it contained a very small amount of high-quality cannabis. With a few simple clicks, and without leaving my home, I'd done what thousands of people have done over the past couple of years: I bought drugs from the notorious "dark net markets". |
| You can't access these websites using a normal browser such as Chrome or Internet Explorer. The dark net markets sit on an encrypted part of the internet called Tor Hidden Services, where URLs are a string of seemingly meaningless numbers and letters that end in ".onion", and are accessed using a special browser called Tor. The browser, which was originally built by the US Navy but is now an open-source project, allows people to browse the net without giving away their location. | You can't access these websites using a normal browser such as Chrome or Internet Explorer. The dark net markets sit on an encrypted part of the internet called Tor Hidden Services, where URLs are a string of seemingly meaningless numbers and letters that end in ".onion", and are accessed using a special browser called Tor. The browser, which was originally built by the US Navy but is now an open-source project, allows people to browse the net without giving away their location. |
| Although it used to be a little tricky to set up, Tor now looks and feels like any other web browser. True, it's a little slower because of how it cloaks your identity (which entails bouncing your URL request around the world via several other "nodes" that use the same software) but that's a price many are willing to pay for online anonymity. This little-known parallel internet is a natural home for an uncensored drugs marketplace, as it is for whistleblower websites and political dissidents who also rely on its powers of obfuscation. | Although it used to be a little tricky to set up, Tor now looks and feels like any other web browser. True, it's a little slower because of how it cloaks your identity (which entails bouncing your URL request around the world via several other "nodes" that use the same software) but that's a price many are willing to pay for online anonymity. This little-known parallel internet is a natural home for an uncensored drugs marketplace, as it is for whistleblower websites and political dissidents who also rely on its powers of obfuscation. |
| The most infamous of these dark net markets was called Silk Road, named after the ancient trading route. Following a lengthy investigation by the FBI, Silk Road was closed down in October 2013, after more than two years of uninterrupted trade. (The trial of Ross Ulbricht, 29, who the FBI alleges ran the site, is ongoing – Ulbricht denies all charges.) At the time, prosecutors proclaimed the beginning of the end of this illicit trade. But as soon as it was knocked offline, dozens of copycat sites were launched by anonymous operators. In 2013 there were a small handful of these marketplaces. There are now around 30, including Hydra, Pandora, Outlaw Market, Agora, Silk Road 2.0 and 1776 Market Place. And most of them are doing a decent trade. | The most infamous of these dark net markets was called Silk Road, named after the ancient trading route. Following a lengthy investigation by the FBI, Silk Road was closed down in October 2013, after more than two years of uninterrupted trade. (The trial of Ross Ulbricht, 29, who the FBI alleges ran the site, is ongoing – Ulbricht denies all charges.) At the time, prosecutors proclaimed the beginning of the end of this illicit trade. But as soon as it was knocked offline, dozens of copycat sites were launched by anonymous operators. In 2013 there were a small handful of these marketplaces. There are now around 30, including Hydra, Pandora, Outlaw Market, Agora, Silk Road 2.0 and 1776 Market Place. And most of them are doing a decent trade. |
| The first thing that strikes you on signing up to Silk Road 2.0 – which was set up within a month of the original being busted – is how eerily familiar it all feels to anyone who's used eBay or Amazon. Every one of the thousands of products on offer has a detailed description, photograph and price. All products and vendors are rated out of five by buyers, who also provide detailed written feedback. There are customer service buttons and shopping trolley carts and free-package-and-delivery and one-off specials. The strange juxtaposition of the familiar and unexpected is a little unsettling – but you quickly get used to it. | The first thing that strikes you on signing up to Silk Road 2.0 – which was set up within a month of the original being busted – is how eerily familiar it all feels to anyone who's used eBay or Amazon. Every one of the thousands of products on offer has a detailed description, photograph and price. All products and vendors are rated out of five by buyers, who also provide detailed written feedback. There are customer service buttons and shopping trolley carts and free-package-and-delivery and one-off specials. The strange juxtaposition of the familiar and unexpected is a little unsettling – but you quickly get used to it. |
| You don't, however, get used to the unbelievable choice of products on offer. Technically speaking, Silk Road 2.0 is an anonymous market for anything (with some exceptions, such as images of child abuse – even radical libertarians tend to draw the line here), which means wares stretch from the mundane to the bizarre: listings include a complete boxset of The Sopranos and a $100 Marine Depot aquarium supplies voucher. In April, the most popular-selling item on the entire site was a fake £20 Tesco voucher. But most people are here for the drugs. There are hundreds of vendors to choose from, selling every conceivable narcotic: heroin, opium, cocaine, acid, weed, steroids, prescription. Under ecstasy alone: 4-emc, 4-mec, 5-apb, 5-it, 6-apb, butylone, mda, mdai, mdma, methylone, mpa, pentedrone, pills. | You don't, however, get used to the unbelievable choice of products on offer. Technically speaking, Silk Road 2.0 is an anonymous market for anything (with some exceptions, such as images of child abuse – even radical libertarians tend to draw the line here), which means wares stretch from the mundane to the bizarre: listings include a complete boxset of The Sopranos and a $100 Marine Depot aquarium supplies voucher. In April, the most popular-selling item on the entire site was a fake £20 Tesco voucher. But most people are here for the drugs. There are hundreds of vendors to choose from, selling every conceivable narcotic: heroin, opium, cocaine, acid, weed, steroids, prescription. Under ecstasy alone: 4-emc, 4-mec, 5-apb, 5-it, 6-apb, butylone, mda, mdai, mdma, methylone, mpa, pentedrone, pills. |
| It's the customer reviews, not clever encryption, that's the oil in the machine, the key to understanding how these markets tick. All the vendors use pseudonyms, but they keep the same fake name to build up their reputation. Because it's so easy for buyers to switch allegiance to any one of 900 competitors at any moment, the vendors are forced to compete for custom. The only way to get it is by having a good history of positive feedback from other users. | It's the customer reviews, not clever encryption, that's the oil in the machine, the key to understanding how these markets tick. All the vendors use pseudonyms, but they keep the same fake name to build up their reputation. Because it's so easy for buyers to switch allegiance to any one of 900 competitors at any moment, the vendors are forced to compete for custom. The only way to get it is by having a good history of positive feedback from other users. |
| As I browsed through the marijuana listings, I found 3,000 offers advertised by more than 200 dealers. So (what else?) I began to scour user reviews, trying to spot those that others had found reliable and trustworthy: "First order was lost … I got a reship and now I'm very happy … He is one of the best vendors on the road!! Very friendly and very good communication too. I will be back soon."; "Please check out this vendor … 5 Stars." | As I browsed through the marijuana listings, I found 3,000 offers advertised by more than 200 dealers. So (what else?) I began to scour user reviews, trying to spot those that others had found reliable and trustworthy: "First order was lost … I got a reship and now I'm very happy … He is one of the best vendors on the road!! Very friendly and very good communication too. I will be back soon."; "Please check out this vendor … 5 Stars." |
| A few reviews like this will make a dealer's reputation. As a result, dealers here are polite, attentive, and consumer-centric – offering free packaging and delivery on big purchases, refunds, special offers and even loyalty systems. Some even offer freebies to anyone willing to write lengthy and careful feedback. I got in touch with "DrugsHeaven" on the site's internal email system. He or she was based overseas, but the vendor page advertised "excellent and consistent top quality weed & hash for a fair price". | A few reviews like this will make a dealer's reputation. As a result, dealers here are polite, attentive, and consumer-centric – offering free packaging and delivery on big purchases, refunds, special offers and even loyalty systems. Some even offer freebies to anyone willing to write lengthy and careful feedback. I got in touch with "DrugsHeaven" on the site's internal email system. He or she was based overseas, but the vendor page advertised "excellent and consistent top quality weed & hash for a fair price". |
| There was a refund policy, estimated shipping times, detailed terms and conditions, and close to 2,000 pieces of feedback over the last four months, averaging around 4.8 out of 5. (And, importantly, the occasional negative review.) "I'm new here," I said. "Do you think I could just buy a tiny amount of marijuana?" DrugsHeaven quickly responded: "Hi there! Thanks for the mail. My advice is that starting small is the smart thing to do, so no problem if you want to start with 1 gram. I would too if I were you. I hope we can do some business! Kind regards. DrugsHeaven." | There was a refund policy, estimated shipping times, detailed terms and conditions, and close to 2,000 pieces of feedback over the last four months, averaging around 4.8 out of 5. (And, importantly, the occasional negative review.) "I'm new here," I said. "Do you think I could just buy a tiny amount of marijuana?" DrugsHeaven quickly responded: "Hi there! Thanks for the mail. My advice is that starting small is the smart thing to do, so no problem if you want to start with 1 gram. I would too if I were you. I hope we can do some business! Kind regards. DrugsHeaven." |
| Law enforcement agencies around the world – and especially in the US – have started to take a keen interest in what takes place in this strange encrypted internet, and are getting better at shutting down these sites. Periodically one market disappears following a police raid or some vendors are arrested. It's usually the result of infiltration by undercover cops, or, more often, human error. But it's an arms race, and it feels like the police are losing. Because they live on the fringes, dark net markets are remarkably adaptive, and learn from each mistake: always innovating ways to be more secure, more decentralised, harder to combat. There is a bustling online community dotted all over the world comprising libertarians, bitcoin fanatics, drugs aficionados and dealers, who all constantly monitor the markets, check security vulnerabilities and performance, and update others on what they find. Each has his or her own motivations – for the libertarians it's a slightly delusional way of denuding the state – but together they keep these sites functioning smoothly. | Law enforcement agencies around the world – and especially in the US – have started to take a keen interest in what takes place in this strange encrypted internet, and are getting better at shutting down these sites. Periodically one market disappears following a police raid or some vendors are arrested. It's usually the result of infiltration by undercover cops, or, more often, human error. But it's an arms race, and it feels like the police are losing. Because they live on the fringes, dark net markets are remarkably adaptive, and learn from each mistake: always innovating ways to be more secure, more decentralised, harder to combat. There is a bustling online community dotted all over the world comprising libertarians, bitcoin fanatics, drugs aficionados and dealers, who all constantly monitor the markets, check security vulnerabilities and performance, and update others on what they find. Each has his or her own motivations – for the libertarians it's a slightly delusional way of denuding the state – but together they keep these sites functioning smoothly. |
| Take the payment system. You don't pay with credit cards, of course, as that would be too easy to trace. The currency of choice is bitcoin, the digital crypto-currency, which can be exchanged easily enough for real world currency, and offers its users a high degree of anonymity. When a flaw was spotted in the payment system (site administrators would hold on to buyers' money until the transaction was complete, but were running off with it) the community developed an even more secure payment method, called "multi-sig escrow", where the money is only transferred if two of the three parties sign off on the transaction. To help keep buyers anonymous, other developers have created clever "tumbling" services, which are a sort of micro-laundering system that obscures who is sending bitcoins to whom. | Take the payment system. You don't pay with credit cards, of course, as that would be too easy to trace. The currency of choice is bitcoin, the digital crypto-currency, which can be exchanged easily enough for real world currency, and offers its users a high degree of anonymity. When a flaw was spotted in the payment system (site administrators would hold on to buyers' money until the transaction was complete, but were running off with it) the community developed an even more secure payment method, called "multi-sig escrow", where the money is only transferred if two of the three parties sign off on the transaction. To help keep buyers anonymous, other developers have created clever "tumbling" services, which are a sort of micro-laundering system that obscures who is sending bitcoins to whom. |
| Every month the sites get smarter. In April "Grams", a search engine for drugs, was launched and included "trending" searches and advertising space. According to James Martin, author of a new book, Drugs on the Dark Net, some vendors are even branding their opium or cocaine as "fair trade", "organic" or sourced from conflict-free zones. "We are a team of libertarian cocaine dealers," writes one dealer, targeting the ethically conscious user: "We never buy coke from cartels! We never buy coke from police! We help farmers from Peru, Bolivia and some chemistry students in Brazil, Paraguay and Argentina. We do fair trade!" | Every month the sites get smarter. In April "Grams", a search engine for drugs, was launched and included "trending" searches and advertising space. According to James Martin, author of a new book, Drugs on the Dark Net, some vendors are even branding their opium or cocaine as "fair trade", "organic" or sourced from conflict-free zones. "We are a team of libertarian cocaine dealers," writes one dealer, targeting the ethically conscious user: "We never buy coke from cartels! We never buy coke from police! We help farmers from Peru, Bolivia and some chemistry students in Brazil, Paraguay and Argentina. We do fair trade!" |
| This restless competition is good for customers. The offline drugs market as it stands is all local monopolies and cartels, run by dealers and gangsters. By introducing clever payment mechanisms, feedback systems, and real competition, power is shifting to the users. And that does precisely what economics textbooks predict. The most surprising statistics about Silk Road 2.0 are not the amount of available drugs (although that is truly staggering); it's the satisfaction scores. | This restless competition is good for customers. The offline drugs market as it stands is all local monopolies and cartels, run by dealers and gangsters. By introducing clever payment mechanisms, feedback systems, and real competition, power is shifting to the users. And that does precisely what economics textbooks predict. The most surprising statistics about Silk Road 2.0 are not the amount of available drugs (although that is truly staggering); it's the satisfaction scores. |
| When I analysed 120,000 customer reviews made on the site earlier this year, more than 95% scored 5/5. These are results any legitimate enterprise would die for. True, price is more variable. According to one study, which compared average drugs prices on Silk Road from vendors in a number of countries to the average street price there, marijuana costs a little more online, although cocaine was significantly cheaper. But the overwhelming consensus among users of the site is that the quality of the product is far higher and its purity far more reliable – and that's something most people will pay a little more for. | When I analysed 120,000 customer reviews made on the site earlier this year, more than 95% scored 5/5. These are results any legitimate enterprise would die for. True, price is more variable. According to one study, which compared average drugs prices on Silk Road from vendors in a number of countries to the average street price there, marijuana costs a little more online, although cocaine was significantly cheaper. But the overwhelming consensus among users of the site is that the quality of the product is far higher and its purity far more reliable – and that's something most people will pay a little more for. |
| My marijuana, I was told by an expert friend before disposing of it, was exceptionally good, and cost around £7 for the gram. (In fact, it looked like a bit more than a gram. Doubtless DrugsHeaven was hoping for repeat custom.) It is of little surprise therefore that the dark net markets are growing so quickly. According to a report by the Digital Citizens Alliance, there are now 45,000 drugs products for sale on these sites. In January, it was around 30,000. | My marijuana, I was told by an expert friend before disposing of it, was exceptionally good, and cost around £7 for the gram. (In fact, it looked like a bit more than a gram. Doubtless DrugsHeaven was hoping for repeat custom.) It is of little surprise therefore that the dark net markets are growing so quickly. According to a report by the Digital Citizens Alliance, there are now 45,000 drugs products for sale on these sites. In January, it was around 30,000. |
| The fact that it is so effective creates a dilemma for those who worry about drugs in society. Thanks to their smart use of technology, dark net markets are almost impossible to close down: they are too adaptive, too creative. This means more and better drugs more readily available at a competitive price, and that's nothing to celebrate. According to Andrew Brown from the charity Drugscope, availability and price are closely correlated with level of use. Besides, there is violence and corruption at every point in the supply chain as drugs move from producers to users. Sites such as Silk Road might shorten the length of that chain, but there will still be gang wars in Mexico over drugs routes, there will still be people becoming addicted to harmful substances. | The fact that it is so effective creates a dilemma for those who worry about drugs in society. Thanks to their smart use of technology, dark net markets are almost impossible to close down: they are too adaptive, too creative. This means more and better drugs more readily available at a competitive price, and that's nothing to celebrate. According to Andrew Brown from the charity Drugscope, availability and price are closely correlated with level of use. Besides, there is violence and corruption at every point in the supply chain as drugs move from producers to users. Sites such as Silk Road might shorten the length of that chain, but there will still be gang wars in Mexico over drugs routes, there will still be people becoming addicted to harmful substances. |
| But history suggests that those who want drugs usually find a way to get them. In October 2013, a large-scale study by the International Centre for Science in Drug Policy brought together data from seven drugs surveillance systems around the world. The unsurprising conclusion? The "war on drugs" is failing. Illicit substances are more available than ever. Sites such as Silk Road offer a glimpse of an alternative. Half of the 7,000 organised crime gangs in the UK are involved in drugs. Although reliable figures for the cost of street trading are notoriously difficult to find, a study by the UN suggests that the costs associated with drug-related crime (fraud, burglary, robbery and shoplifting) in England and Wales were equivalent to 1.6% of the country's national income. | But history suggests that those who want drugs usually find a way to get them. In October 2013, a large-scale study by the International Centre for Science in Drug Policy brought together data from seven drugs surveillance systems around the world. The unsurprising conclusion? The "war on drugs" is failing. Illicit substances are more available than ever. Sites such as Silk Road offer a glimpse of an alternative. Half of the 7,000 organised crime gangs in the UK are involved in drugs. Although reliable figures for the cost of street trading are notoriously difficult to find, a study by the UN suggests that the costs associated with drug-related crime (fraud, burglary, robbery and shoplifting) in England and Wales were equivalent to 1.6% of the country's national income. |
| From what little is known of them, most of the dealers on dark net markets resemble middle managers in logistics companies who spend their days taking and shipping orders all day and working out new marketing strategies. They aren't violent gangsters fighting over turf. As these markets continue to grow the street dealer will be squeezed out. For the user too, the benefits are plain. On the street, drug purity is wildly variable: the average purity of street cocaine is 25%, but has been found to be as low as 2%, typically cut with mixing substances such as benzocaine. | From what little is known of them, most of the dealers on dark net markets resemble middle managers in logistics companies who spend their days taking and shipping orders all day and working out new marketing strategies. They aren't violent gangsters fighting over turf. As these markets continue to grow the street dealer will be squeezed out. For the user too, the benefits are plain. On the street, drug purity is wildly variable: the average purity of street cocaine is 25%, but has been found to be as low as 2%, typically cut with mixing substances such as benzocaine. |
| This is extremely dangerous, because overdosing is often the result of not knowing the purity, dosage, or content of the drug you take. In 2009-10 a contaminated product led to 47 heroin users in Scotland being infected with anthrax. Fourteen died. The user-ranking system provides a more reliable way of determining the quality and purity of the product: trusting the feedback of people who have used it. | This is extremely dangerous, because overdosing is often the result of not knowing the purity, dosage, or content of the drug you take. In 2009-10 a contaminated product led to 47 heroin users in Scotland being infected with anthrax. Fourteen died. The user-ranking system provides a more reliable way of determining the quality and purity of the product: trusting the feedback of people who have used it. |
| But perhaps the biggest win of all could be the simplest. In a perverse way, the brutal efficiency of these sites could strip illicit drugs of any remaining allure or mystique. | But perhaps the biggest win of all could be the simplest. In a perverse way, the brutal efficiency of these sites could strip illicit drugs of any remaining allure or mystique. |
| Buying drugs from professional-looking sites with user ratings, proceed-to-carts and customer-service buttons makes sourcing cocaine a lot like buying a DVD or doing your weekly shop. And every bit as glamorous. | Buying drugs from professional-looking sites with user ratings, proceed-to-carts and customer-service buttons makes sourcing cocaine a lot like buying a DVD or doing your weekly shop. And every bit as glamorous. |
| Jamie Bartlett is the author of The Dark Net (William Heinemann), which is out now | Jamie Bartlett is the author of The Dark Net (William Heinemann), which is out now |
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