Drug trafficking via the darknet. Chloé Carpentier Chief, Drug Research Section 23 October 2018
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1 Drug trafficking via the darknet Chloé Carpentier Chief, Drug Research Section 23 October
2 The darknet Identity of darknet users is hidden (TOR - The Onion Router ) Trading platforms where drugs can be purchased, alongside other commodities and services Crypto-currencies, e.g. bitcoins (> 1,000) Delivery by post or private parcel services 4-10% of the information on the surface web vs. hidden web (including the darknet ) contains 90-96% of global information available on the Internet drug trafficking: the single most important illegal activity done via the darknet
3 Source: EMCDDA/Europol, Drugs and the darknet, Listings
4 proportion in per cent 45.8 Finland/a 27.2 Norway/a 24.6 Sweden/a 25 Wales/a 24.6 England 22.5 Scotland/a 22 Ireland 21.5 France 10.5 Croatia/a 10.1 Czechia Proportion in per cent 9.8 Belgium 7.4 Germany 7.3 Poland/a 6.8 Austria 6.5 Spain 6.1 Netherlands 6 Italy/a 5.1 Denmark 4.4 Switzerland 4.2 Greece 3.1 Portugal/a 3.1 Hungary 3.3 Slovakia 1.4 Iceland/a Israel 6.6 Purchases of drugs 18.1 USA 9.7 Canada 5 Argentina/a 1.8 Colombia 3.1 Mexico/a 5 Brazil 17.2 Australia 2.8 New Zealand North America 17.2 Latin America 4.1 Oceania 14.9 Europe 12.2 Asia 6.6 Global 9.3 Proportion of internet using drug users purchasing their drugs via the darknet, 2014 and (or latest year /a ) Global Europe Asia Americas Oceania Averages Europe Europe 2014 Americas Americas 2014 Oceania Oceania 2014 Asia Asia 2014 Global Global 2014 a/ Closest year available used instead of 2014 or. Source: Global Drug Survey (GDS)
5 Comparative advantage Anonymity Lower threat to personal safety Perceived better quality (less variability) and are more readily available Perceived lower risk of arrest Drug users ready to pay a premium price to buy drugs via the darknet But also potential to attract new consumers (well integrated into society)
6 Impact on drugs used Has accessing drugs through the darknet affected the range of drugs consumed? Did not consume drugs prior to access them through darknet markets, 4% (5% in GDS ) Consumed different class of drugs than previously, 15% Consumed a smaller range of drugs than previously, 6% Same range of drugs consumed as previously, 45% Consumed a wider range of drugs than previously, 30% Source: Global Drug Survey
7 in % of respondents who reported having purchased drugs via the darknet Drugs purchased Drug purchases via the darknet, MDMA Cannabis LSD NPS all Amphetamines Cocaine 2C-B Pharmaceuticals DMT Ketamine Mushrooms Benzodiazepines P. opioids Modafinil Source: Global Drug Survey (GDS).
8 Revenues Comparatively small revenues but fast increasing 16 major darknet markets Nov Feb. $44 million per year (EMCDDA/Europol) AlphaBay Jan. -July $73 million per year (EMCDDA/Europol) 8 major darknet markets Jan. : $170-$300 million per year (RAND Europe) equivalent to 0.1%-0.2% of US and EU retail drug market Transactions rose 2.6 fold or 50% per year (Sept 2013 Jan ) Sources: EMCDDA/Europol, Drugs and the darknet, ; Rand Europe, Internet-facilitated drugs trade (data from 8 crypto-markets: AlphaBay, Cryptomarket, Dark, Dreammarket, French, Hansa, Nucleus, Python) using DATACRYPTO (web crawler/scraper software); EMCDDA, European Drug Report. Trends and developments, Lisbon and ONDCP, What America s Users Spend on Illegal Drugs: , Feb
9 Estimated (conservative) retail value of the illicit drug market in the EU, 2013 Distribution of revenues Estimated minimum past month revenues from eight cryptomarkets, Jan. *Amphetamines and cocaine * Estimated retail value of the illicit drug market in the USA, 2010 billion US$ market share Cannabis 41 38% Cocaine 28 26% Heroin 27 25% Methamphetamine 13 12% Total % Range Other drugs 2 (in 2000) <2% Source: RAND Europe. Darknet Over-representation of ecstasy Under-representation of heroin Sources: EMCDDA, European Drug Report. Trends and developments, Lisbon and ONDCP (based on RAND) What America s Users Spend on Illegal Drugs: , Feb
10 Key challenges Practical challenges technical equipment combination of expertise in internet/darknet and drug markets Legal challenges responsible jurisdiction sharing of information under-cover agents use of malware prevent destruction of digital evidence access to user accounts use of accounts of former drug vendors secrecy of mail seize bitcoins react fast and cooperate effectively
11 THANK YOU FOR YOUR ATTENTION For more information:
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