Overcoming the Challenges of Cybercriminals Trafficking Illegal Goods from the Dark Web

Selling illicit goods on dark web marketplaces

Since its inception the dark web has been associated with illicit activities, from illegal drug trades to underground marketplaces for weapons, counterfeit goods, and fake passports – as just some examples. 

Operating beyond the reach of conventional search engines and law enforcement, this hidden part of the internet thrives on anonymity and encryption, making it a haven to bypass legal constraints. One of the critical issues connected to the dark web is its role in facilitating customs evasion and smuggling operations. Smugglers exploit the dark web to sell contraband across borders, avoiding detection and penalties that would otherwise be enforced through traditional customs channels. This raises concerns about the effectiveness of border security and the rising threat of illegal goods flooding international markets. 

Dark web activities and global smuggling networks not only threaten national security but also undermine the integrity of international trade and pose a danger to consumers. As law enforcement agencies grapple with these evolving threats, they face the daunting task of developing new strategies and technologies to combat the rising tide of cyber-enabled smuggling.

How the dark web has changed the status quo 

Before the dark web, smuggling operations were largely conducted through physical networks and direct, often risky, interactions. The advent of dark web marketplaces changed this by allowing smugglers and buyers to connect and conduct transactions anonymously, without ever meeting in person. This shift made it easier for criminals to arrange the movement of contraband across borders, complicating the efforts of customs and law enforcement agencies.

The dark web began playing a significant role in customs evasion and smuggling in the early 2010s, coinciding with the rise of dark web marketplaces like SilkRoad, which launched in 2011. These marketplaces provided a new, more efficient way for criminals to buy and sell illegal goods, including drugs, weapons, counterfeit products, and more, all under the cloak of anonymity provided by the Tor network and cryptocurrencies like Bitcoin.

As these platforms grew in popularity, so did their impact on global smuggling operations. Law enforcement agencies around the world began to notice an increase in the seizure of small goods, often shipped via regular postal services, making detection difficult. These packages were typically sourced through dark web transactions, highlighting the growing challenge of combating cyber-enabled smuggling activities. The increase has also meant that governments and law enforcement agencies around the world have had to spend more money to combat the likes of counterfeit goods, including custom, and border protection.

The current challenges law enforcement and border control face

Despite advancements in technology and international cooperation, several challenges continue to impede efforts to curb smuggling.

The anonymity factor

The dark web’s greatest strength for cybercriminals – and law enforcement’s biggest hurdle – is its anonymity. Traditional methods of tracking criminals, such as surveillance or tracing financial transactions, are often rendered ineffective in this environment. Users on the dark web rely heavily on cryptocurrencies like Bitcoin, which, while not entirely untraceable, offer a level of anonymity that makes it difficult to connect transactions to identities. Moreover, the use of encryption allows sellers and buyers to communicate securely, leaving little to no trace for authorities to follow.

The anonymity is particularly problematic when it comes to smuggling. For example, a drug dealer operating on the dark web can easily sell narcotics to buyers across the globe without ever revealing their identity or location. Packages containing illegal substances are often shipped through traditional postal systems, blending in with the vast sea of legitimate commerce. Without a clear way to trace the origins of these transactions, law enforcement agencies are often left in the dark.

Evolving technology

As law enforcement agencies develop tools and methods to combat dark web activity, criminals continuously evolve their tactics to stay ahead. This cat-and-mouse game is increased by the decentralized nature of the dark web marketplaces. When one marketplace is shut down – like SilkRoad – another quickly rises in its place, often with enhanced security features designed to combat law enforcement efforts. These marketplaces are not only resilient but also innovative, employing advanced encryption, multi-signature escrow dark web systems, and decentralized hosting to protect their operations.

This constant evolution requires law enforcement agencies to be equally dynamic, investing in cutting-edge technology and cyber expertise. However, keeping up with these rapid developments is a significant challenge. Many agencies struggle with the pace at which new methods and anonymous communication channels are developed and adopted by criminals. Keeping up with technology demands continuous training, investment, and collaboration with cybersecurity experts, often straining the limited resources of law enforcement.

International collaboration

A single transaction on the dark web can involve actors from multiple countries. A seller in one country, a buyer in another, with servers hosting the marketplace in yet another jurisdiction. The cross-border activity creates significant jurisdictional challenges, as law enforcement agencies must navigate the complex web of international law, extradition treaties, and varying legal standards.

Coordinating efforts across borders is no small feat. It requires strong international cooperation, which is often hampered by differences in legal frameworks, resource availability, and priorities among nations. For example, what one country may prioritize as a major criminal activity, another may view it as a lesser concern, leading to disparities in enforcement actions. Moreover, the process of obtaining international warrants or mutual legal assistance can be slow, allowing criminals to continue their activities unchecked while legal proceedings drag on.

The overwhelming volume of illicit shipments

Customs agencies, tasked with inspecting goods entering and leaving a country, face a challenge in detecting illegal shipments connected to dark web transactions. The sheer volume of international trade (as an example, 11 billion tons of goods are transported by ship each year) makes it nearly impossible to scrutinize every package. Smugglers exploit this by sending illegal goods in small quantities, hidden within otherwise legitimate shipments, or mis declaring the content to avoid detection.

Advanced smuggling techniques further complicate the work of customs officials. Criminals may use fake shipping labels, conceal drugs within ordinary products, or even employ 3D printing technology to create components for weapons or counterfeit goods. The ability to blend illegal items with legitimate trade means customs agencies must rely on intelligence-driven targeting and advanced technologies, which are not always available.

Resource constraints and the need for specialized training

One of the most significant barriers to effective law enforcement against dark web smuggling is resource constraints. Investigating dark web crimes requires a high level of expertise in cyber forensics, cryptocurrency tracking, and digital communications – all of which demand significant investment in training and technology. Many law enforcement agencies, particularly in developing countries, struggle with limited budgets and may lack the specialized personnel needed to tackle these complex cases.

Even in more well-resourced countries, the scale of the dark web problem can overwhelm existing capabilities. Cybercrime units are often stretched thin, dealing with a wide array of digital crimes beyond just dark web activities. The rapid pace of technological change means that continuous training and investment in new tools are essential, yet this is difficult to maintain over time, particularly when budgets are tight or priorities shift.

How law enforcement have targeted sellers on the dark web

While there are many issues facing government and law enforcement agencies when it comes to policing the dark web and tracing illicit goods being exported and imported, here are a few examples of operations targeting vendors and buyers of marketplaces on the dark web.

Operation DisrupTor

On Tuesday 22 September 2020, the operation, called DisrupTor, resulted in arrests of 179 vendors of illicit goods and seizure of: $6.5 million in cash and virtual currencies; some 500 kilograms of drugs and medicine containing addictive substances and 64 firearms.

The operation was undertaken by Europol and Eurojust, as well as a number of law enforcement agencies from across the world, targeting vendors of illicit goods on the dark web. These countries included Austria, Cyprus, Germany, the Netherlands, Sweden, Australia, Canada, the United Kingdom and the United States.

The operation shows that anonymity of dark web marketplaces does not provide a safe harbor for criminals. 

Commenting on this operation, the Head of Europol’s European Cybercrime Center (EC3), Edvardas Šileris, said: “Law enforcement is most effective when working together, and today’s announcement sends a strong message to criminals selling or buying illicit goods on the dark web. The hidden internet is no longer hidden, and your anonymous activity is not anonymous. Law enforcement is committed to tracking down criminals, no matter where they operate – be it on the streets or behind a computer screen”.

Hydra Marketplace

On April 5, 2022, the U.S. Department of Justice announced the shutdown of Hydra Market, the world’s largest dark web marketplace, following a joint operation with German law enforcement. Hydra facilitated the sale of illicit goods, and laundered over $5.2 billion in cryptocurrency. Russian resident Dmitry Pavlov was indicted for his role in operating Hydra’s servers. This operation is part of ongoing efforts to disrupt dark web markets and combat illegal activities conducted through this part of the internet. 

“The Justice Department will be relentless in our efforts to hold accountable those who violate our laws – no matter where they are located or how they try to hide their crimes,” said Attorney General Merrick B. Garland. “Together with our German law enforcement partners, we have seized the infrastructure of the world’s largest darknet market, but our work is far from over. We will continue to work alongside our international and interagency partners to disrupt and dismantle darknet markets, and to hold those who commit their crimes on the dark web accountable for their acts.”

“This coordinated action sends a clear message to anyone attempting to operate or support an online criminal enterprise under the cover of the dark web,” said U.S. Attorney Stephanie M. Hinds for the Northern District of California. “The dark web is not a place criminals can operate with impunity or hide from U.S. law enforcement, and we will continue to use our sophisticated tools and expertise to dismantle and disable darknet markets. This action also underscores the importance of international law enforcement collaboration. We thank German authorities and the Bundeskriminalamt, the German Federal Criminal Police Office, for its valued assistance in this case.”

Combatting dark web and illicit goods 

While law enforcement faces significant challenges in combating the smuggling of illicit goods across boundaries, there are ways that government, law enforcement and border control can take control and combat the goods sold on the dark web.

The anonymity factor

The dark web does offer a certain level of anonymity for cybercriminals. However, with advanced dark web investigation tools that safely extract and index content, law enforcement agencies can gather intelligence over time, enabling them to build a case and eventually identify the individuals selling illicit goods. 

Criminals can overestimate  the security provided by the dark web, and all it takes is one single mistake to provide the crucial evidence that allows law enforcement to secure a conviction and put them behind bars.

Evolving technology and resource constraints

Border control and law enforcement agencies need to stay ahead of dark web sellers by adopting new technologies that enhance their ability to detect and disrupt illegal activities. But while some new technology may take a lot of resources to set up and implement, dark web investigation and monitoring tools need little input or manpower to be effective in the hunt for cybercriminals. Law enforcement agencies can explore individuals who may be selling and smuggling illicit goods, with the ability to cross-reference aliases, usernames, and pseudonyms across marketplaces and easily build up a profile of high-severity criminal actors. These tools also take the sheer wealth of dark web data available to agencies and turn it into actionable intelligence and insights, removing the need for an abundance of resources, and ultimately reducing the time to takedown marketplaces and seize assets. 

International collaboration

Working closely with law enforcement agencies from around the world may be somewhat of a logistical headache, but this collaboration is invaluable when it comes to sharing knowledge on the cybercriminal gangs operating marketplaces on the dark web. 

The exchange of intelligence regarding dark web marketplace activities (including shipping routes used for smuggling illicit goods, known or suspected sellers) can help to disrupt global supply chains ending in coordinated raids and seizures across multiple countries. This can then prevent cybercriminals from relocating or moving operations across borders to evade law enforcement.

The overwhelming volume of illicit shipments

Catching cybercriminals on the dark web who are selling illicit goods and smuggling them across borders is a complex task, especially when evaluating the overwhelming amount of shipments that pass through customs each year. However, by using a combination of technology and intelligence gathering, cybercriminals can be caught at the point where they are selling illicit goods – the dark web.

Law enforcement agencies and border control can infiltrate marketplaces on the dark web by using dark web investigation and monitoring tools, as we discussed earlier. Using this technology allows them to gather intelligence, and track the supply chain of illicit goods, with the ultimate goal of taking down the marketplace, seizing assets, and arresting the cybercriminals.

The battle against illicit goods being sold on the dark web marketplaces

Addressing the smuggling of illicit goods presents significant challenges for border force and law enforcement agencies, driven by the complexity of evolving cybercriminal methods and the need for advanced technological solutions. The success of the takedowns we have seen have come from the sharing of information and intelligence from dark web investigation tools being shared between agencies across the globe. By continuously evolving their tactics and embracing new solutions, law enforcement and border control agencies can pose a threat to cybercriminals and marketplaces on the dark web.