Casting the Dark Web in a New Light

Learned a lot lending an editorial hand here:

MIT Sloan Management Review, July 15, 2019

by Keman Huang, Michael Siegel, Keri Pearlson, and Stuart Madnick

With cyberattacks increasingly threatening businesses, executives need new tools, techniques, and approaches to protect their organizations. Unfortunately, criminal innovation often outpaces their defensive efforts. In April 2019, the AV-Test Institute, a research organization that focuses on IT security, registered more than 350,000 new malware samples per day, and according to Symantec’s 2019 Internet Security Threat Report, cyberattacks targeting supply chain vulnerabilities increased by 78% in 2018.

Wide-scale attacks are becoming more common, too. In October 2016, a distributed denial-of-service (DDoS) attack that hit Dyn, a domain name system (DNS) provider, in turn brought down companies such as PayPal, Twitter, Reddit, Amazon, Netflix, and Spotify. In 2017, the WannaCry and NotPetya ransomware attacks affected health care, education, manufacturing, and other sectors around the world. A report from the Department of Health in the U.K. revealed that WannaCry cost it 92 million pounds. That same year, while the cyber-defense community was working out how to fight ransomware, cryptojacking — the hijacking of other people’s machines to mine cryptocurrency — arose as a threat. Cryptojacking attacks detected by Symantec increased by 8,500% during 2017. During 2018, the value of cryptocurrencies plunged 90%, yet Symantec still blocked four times as many cryptojacking attacks as the previous year.

Attackers always seem to be one or two steps ahead of the defenders. Are they more technically adept, or do they have a magical recipe for innovation that enables them to move more quickly? If, as is commonly believed, hackers operated mainly as isolated individuals, they would need to be incredibly skilled and fast to create hacks at the frequency we’ve seen. However, when we conducted research in dark web markets, surveyed the literature on cyberattacks, and interviewed cybersecurity professionals, we found that the prevalence of the “fringe hacker” is a misconception.

Through this work, we found a useful lens for examining how cybercriminals innovate and operate. The value chain model developed by Harvard Business School’s Michael E. Porter offers a process-based view of business. When applied to cybercrime, it reveals that the dark web — that part of the internet that has been intentionally hidden, is inaccessible through standard web browsers, and facilitates criminal activities — serves as what Porter called a value system. That system includes a comprehensive cyberattack supply chain, which enables hackers and other providers to develop and sell the products and services needed to mount attacks at scale. Understanding how it works provides new, more effective avenues for combating attacks to companies, security service providers, and the defense community at large. Read the rest here.