Enablers of Financial Fraud? The State Of Cryptomarkets And Their Impact On Financial Fraud And Hacking Services


First generation online illicit markets were launched in the 1990s and 2000s and were hosted on online discussion forums, newsgroups and Internet Relay Chat (IRC) chatrooms. They offered mainly stolen financial information and hacking services. Over the past five years, second generation online illicit markets – known as cryptomarkets – have appeared and provide their participants with a much higher level of operational security. This increased security is due to the use of anonymous connections using the Onion Router (Tor), anonymous payments through the use of virtual currencies like bitcoins and lower victimization rates through the use of escrow payments and automated feedback systems. Cryptomarkets are used to offer many illicit products but focus mainly on drugs, stolen financial information and hacking services. The aim of this presentation will be to describe the current state of cryptomarkets, particularly those where Canadians are present as vendors of stolen financial information and/or hacking services linked to financial fraud. The market share of Canadian vendors will be analyzed as well as the type of products they offer. A focus will be put on the new listings where specific profiles of credit cards can be bought and sold. This presentation will also present the possible actions that financial institutions could take in light of the growth of cryptomarkets.

This content has been updated on 8 August 2016 at 17 h 47 min.