Unmasking the dark web and how cybersecurity shields businesses and consumers from hidden scams

By Neehar Pathare, MD, CEO and CIO, 63SATS

The internet that most users engage with daily represents only a fraction of its full expanse. Beneath the search engine-indexed pages lies the Deep Web, a vast network that includes private databases, corporate intranets, and confidential government archives. Hidden even deeper is the Dark Web, an encrypted corner of the internet accessible only through specialised tools like The Onion Router (TOR).

Originally developed by the U.S. Naval Research Laboratory to enable secure intelligence communications, TOR conceals user identities by routing traffic through multiple encrypted relays. While this provides essential privacy for journalists and activists in oppressive regimes, it has also become a safe haven for cybercriminals, illicit trade, and digital black markets.

The cybercrime marketplace: An economy of illicit trade

Dark Web marketplaces operate similarly to legitimate e-commerce platforms, allowing anonymous vendors and buyers to engage in transactions—except that the goods and services being exchanged are often illegal. Transactions are typically conducted using privacy-focused cryptocurrencies like Bitcoin, Monero, and ZCash, ensuring minimal traceability.

• 
  Stolen Data: Personal and financial records, Social Security numbers, and banking credentials are bought and sold in bulk.
  
• Malware-as-a-Service (MaaS): Ready-made malware, ransomware, and hacking tools are available for purchase, allowing even non-technical criminals to execute cyberattacks.
  
• Drugs and weapons: Illegal narcotics and firearms are frequently traded, facilitated by anonymous shipping methods.
  
• Counterfeit money and documents: Fake passports, IDs, and currency fuel identity fraud and financial crimes.
  
• Hacking services: Cyber mercenaries offer services like Distributed Denial-of-Service (DDoS) attacks, espionage, and network infiltration.

Despite its anonymity, the Dark Web operates on a system of trust. Vendors maintain credibility through customer reviews, escrow services, and reputation scores. However, deception is rampant, with frequent exit scams, where marketplace operators vanish with users’ funds.

Real-world cases: The dark web’s influence

The influence of the Dark Web extends into real-world criminal activities. In March 2024, a case that shocked the tech industry involved “MillionaireMike”, later identified as James Roland Jones, a SpaceX engineer who pleaded guilty to selling insider information via Dark Web forums.

Similarly, in India’s Nuh district, authorities uncovered over 28,000 cases of cyber fraud and extortion linked to criminal groups operating through Dark Web networks.

Law enforcement vs. the Dark web: A global battle

Combating cybercrime on the Dark Web requires a mix of advanced technology, digital forensics, and international cooperation. Agencies like the FBI, Interpol, and Europol deploy cutting-edge tools to track criminals, dismantle illicit marketplaces, and apprehend perpetrators.

Notable law enforcement actions

• Operation Onymous (2014): Led by Europol, this operation took down Silk Road 2.0, a major Dark Web drug marketplace, leading to multiple arrests.
  
• Operation DisrupTor (2020): A joint task force seized over 500 kg of drugs, 63 firearms, and $6.5 million in cryptocurrency by infiltrating Dark Web markets.
  
• Genesis Market Takedown (2023): The FBI and international agencies shut down Genesis Market, which specialised in selling stolen identities and login credentials.
  
• Russian Hacker Sanctions (2024): The Australian government sanctioned Aleksandr Ermakov for orchestrating the 2022 Medibank breach, marking the first individual cyber sanction.

How consumers can be affected by the dark web

The Dark Web poses serious risks to ordinary consumers and citizens, as personal data and financial information frequently end up on illicit marketplaces. Stolen credit card details, medical records, and login credentials are sold in bulk, making individuals vulnerable to fraud, identity theft, and phishing attacks.

Protecting against dark web scams

• Use strong, unique passwords: Avoid reusing passwords across multiple accounts and enable multi-factor authentication.
  
• Monitor financial statements: Regularly check bank and credit card statements for suspicious transactions.
  
• Dark web monitoring services: Such services can alert individuals if their personal data appears in Dark Web databases.
  
• Be wary of phishing scams: Cybercriminals often use stolen information to craft targeted phishing emails and impersonation scams.
  
• Limit personal data sharing: Avoid sharing sensitive personal details on social media or unsecured websites.
  
• Enable credit freezes: Placing a credit freeze with your bank can prevent identity thieves from opening fraudulent accounts.

As the Dark Web continues to evolve, so too must our strategies for combating cybercrime. A combination of technological advancements, global cooperation, and consumer awareness will be critical in addressing the growing challenges of this hidden digital underworld.