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The darknet – a wild west for fake coronavirus ‘cures ‘? The truth is more complicated (and regulated)

The coronavirus pandemic has spawned reports of unregulated health products and fake cures being sold on the dark web. These include black darkode market – https://ads.wealthxo.com/user/profile/1354929 PPE, illicit medications like the widely touted “miracle” drug chloroquine, and fake COVID-19 “cures” including blood supposedly from recovered coronavirus patients.

These dealings have once again focused public attention on this little-understood portion of the internet. Nearly ten years as it started being used on a substantial scale, the dark web remains a lucrative safe haven for traders in a selection of illegal goods and services, especially illicit drugs.

Black market trading on the dark web is carried out primarily through darknet marketplaces or cryptomarkets. These are anonymised trading platforms that directly connect buyers and sellers of a selection of illegal goods and services – similar to legitimate trading websites such as for instance eBay.

So how do darknet marketplaces work? And just how much illegal trading of COVID-19-related products is happening via these online spaces?

Not just a free-for-all

There are currently higher than a dozen darknet marketplaces in operation. Protected by powerful encryption technology, authorities around the world have largely didn’t contain their growth. A steadily increasing proportion of illicit drug users all over the world report sourcing their drugs online. In Australia, we have one of the world’s highest concentrations of darknet drug vendors per capita.

Despite popular belief, cryptomarkets are not the “lawless spaces” they’re often presented as in the news. Market prohibitions exist on all mainstream cryptomarkets. Universally prohibited goods and services include: hitman services, trafficked human organs and snuff movies.

Although cryptomarkets lie beyond your realm of state regulation, every one is set up and maintained by a main administrator who, along with employees or associates, is in charge of the market’s security, dispute resolution between buyers and sellers, and the charging of commissions on transactions.

Administrators may also be ultimately responsible for determining what can and can’t be sold on their cryptomarket. These decisions tend informed by:

the attitudes of the surrounding community comprising buyers and sellers
the extent of consumer demand and supply for several products
the revenues a website makes from commissions charged on transactions
and the perceived “heat” that may be attracted from law enforcement in the trading of particularly dangerous illegal goods and services.

Experts delve into the dark web

A report from the Australian National University published last week looks at several hundred coronavirus-related products on the market across twelve cryptomarkets, including supposed vaccines and antidotes.

While the study confirms some unscrupulous dark web traders are indeed exploiting the pandemic and seeking to defraud naïve customers, these records must certanly be contextualised with a couple of important caveats.

Firstly, the amount of dodgy covid-related products on the market on the dark web is relatively small. According to the research, they account for about 0.2% of all listed items. The overwhelming majority of products were those we are already knowledgeable about – particularly illicit drugs such as cannabis and MDMA.

Also, while the research dedicated to products listed available, these are usually listings for products that either do no exist or are listed with the particular intention to defraud a customer.

Thus, the particular sale of fake coronavirus “cures” on the dark web is probable minimal, at best.

 

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