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Borrowing from the playbook of ransomware purveyors, the darknet narcotics bazaar Incognito Market has begun extorting all of its vendors and buyers, threatening to publish cryptocurrency transaction and chat records of users who refuse to pay a fee ranging from $100 to $20,000. The bold mass extortion attempt comes just days after Incognito Market administrators reportedly pulled an “exit scam” that left users unable to withdraw millions of dollars worth of funds from the platform.
An extortion message currently on the Incognito Market homepage.
In the past 24 hours, the homepage for the Incognito Market was updated to include a blackmail message from its owners, saying they will soon release purchase records of vendors who refuse to pay to keep the records confidential.
“We got one final little nasty surprise for y’all,” reads the message to Incognito Market users. “We have accumulated a list of private messages, transaction info and order details over the years. You’ll be surprised at the number of people that relied on our ‘auto-encrypt’ functionality. And by the way, your messages and transaction IDs were never actually deleted after the ‘expiry’….SURPRISE SURPRISE!!! Anyway, if anything were to leak to law enforcement, I guess nobody never slipped up.”
Incognito Market says it plans to publish the entire dump of 557,000 orders and 862,000 cryptocurrency transaction IDs at the end of May.
“Whether or not you and your customers’ info is on that list is totally up to you,” the Incognito administrators advised. “And yes, this is an extortion!!!!”
The extortion message includes a “Payment Status” page that lists the darknet market’s top vendors by their handles, saying at the top that “you can see which vendors care about their customers below.” The names in green supposedly correspond to users who have already opted to pay.
The “Payment Status” page set up by the Incognito Market extortionists.
We’ll be publishing the entire dump of 557k orders and 862k crypto transaction IDs at the end of May, whether or not you and your customers’ info is on that list is totally up to you. And yes, this is an extortion!!!!
Incognito Market said it plans to open up a “whitelist portal” for buyers to remove their transaction records “in a few weeks.”
The mass-extortion of Incognito Market users comes just days after a large number of users reported they were no longer able to withdraw funds from their buyer or seller accounts. The cryptocurrency-focused publication Cointelegraph.com reported Mar. 6 that Incognito was exit-scamming its users out of their bitcoins and Monero deposits.
CoinTelegraph notes that Incognito Market administrators initially lied about the situation, and blamed users’ difficulties in withdrawing funds on recent changes to Incognito’s withdrawal systems.
Incognito Market deals primarily in narcotics, so it’s likely many users are now worried about being outed as drug dealers. Creating a new account on Incognito Market presents one with an ad for 5 grams of heroin selling for $450.
New Incognito Market users are treated to an ad for $450 worth of heroin.
The double whammy now hitting Incognito Market users is somewhat akin to the double extortion techniques employed by many modern ransomware groups, wherein victim organizations are hacked, relieved of sensitive information and then presented with two separate ransom demands: One in exchange for a digital key needed to unlock infected systems, and another to secure a promise that any stolen data will not be published or sold, and will be destroyed.
Incognito Market has priced its extortion for vendors based on their status or “level” within the marketplace. Level 1 vendors can supposedly have their information removed by paying a $100 fee. However, larger “Level 5” vendors are asked to cough up $20,000 payments.
The past is replete with examples of similar darknet market exit scams, which tend to happen eventually to all darknet markets that aren’t seized and shut down by federal investigators, said Brett Johnson, a convicted and reformed cybercriminal who built the organized cybercrime community Shadowcrew many years ago.
“Shadowcrew was the precursor to today’s Darknet Markets and laid the foundation for the way modern cybercrime channels still operate today,” Johnson said. “The Truth of Darknet Markets? ALL of them are Exit Scams. The only question is whether law enforcement can shut down the market and arrest its operators before the exit scam takes place.”
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Sextortion is something no parent wants to think could happen to their child, nor a topic most of us would ever imagine we’d need to discuss in our homes. However, according to the latest FBI reports, sextortion is a digital threat to children that, woefully, is on the rise.
According to the FBI, there has been a considerable increase lately in sextortion cases involving children and teens being coerced by adults online.
A sextortion scenario can emerge in several ways. Most often, it occurs when an adult (posing as a peer) engages in casual conversation with an underage child, gains their trust through online conversation, then pressures or threatens the child into sharing sexual photos or videos of themselves.
In some cases, the initial contact with the criminal will be a threat. The person may claim to already have a revealing picture or video of a child that they threaten to share if the victim does not send more pictures.
According to the FBI, this crime more often starts when young people believe they are communicating with someone their age who is interested in a relationship or with someone who is offering something of value. This catfish (false profile) relationship usually involves the predator using gifts, money, flattery, lies, or other methods to get a young person to produce an image.
These dangerous conversations can be initiated through text, a social or chat app, a gaming site, or any number of digital connection points.
After a criminal successfully obtains a photo or video from their victim, the threats can escalate to promises to publish the content or even hurt the child if they don’t send more. This emotionally harrowing situation can ignite shame, fear, and confusion in children who may be too embarrassed to ask for help or report the abuse.
While these criminals rarely request to meet their victims face-to-face, the emotional and physical impact of sextortion can be devastating to a child. According to the FBI, some victims report abusers who become vicious with non-stop harassment and threats. Victims can feel scared, alone, embarrassed, and increasingly desperate. Sadly, as reported in the news, this type of crime can leave some children feeling like they have no way out of the situation.
If you are a parent or caregiver, explain to your child how sextortion can happen to anyone online and why it’s important to only connect with known friends and family. Parents: Consider boosting your device security with parental controls that filter content, report your child’s online activity, and reveal potential problems.
Some essential safety protocols kids should follow online are worthy of repeating. They are:
1) Make social accounts private, don’t share personal information, and only connect with known friends
2) Ignore and block messages from strangers
3) Keep your guard up. People can pretend to be anyone online, and photos can be altered
4) Be suspect if anyone asks you to message or text with them privately
5) Never share risky photos with anyone online—even a trusted friend
6) Tell someone immediately if someone is threatening you online.
With your child, go through their apps, social networks, chats, gaming communities, and friend groups and do some editing, defriending, and blocking. Make sure both you and your child know and trust all their online connections. Remember: Open communication and an honest relationship with your child are the most powerful tools you have to keep your child safe online.
A sextortion situation for a child can be incredibly confusing and cause them to isolate and avoid telling anyone about it. Remind and be clear with your child that they would never be in trouble for coming to you with any problem. Let them know that sextortion is a crime for the perpetrator and that they have not broken any laws by sending photos (despite what an abuser might have told them).
Victims of sextortion should go to a parent or trusted adult and tell them they need help. While doing this can feel terrifying, it’s crucial for victims to know people understand and want to help. For parents and caregivers, contact the FBI at 1-800-CALL-FBI or report the crime online at tips.fbi.gov.
While the bad actors online are out to exploit and ruin our digital spaces, it’s important to maintain a healthy perspective rather than responding with fear. Remind your kids that there’s an army of people even more dedicated than the criminals; people like the FBI who are out to stop online crime and keep the internet safe for families. Additionally, as a parent or caregiver, your commitment to helping your family stay informed, equipped, and empowered online is how we all win.
The post Sextortion: What Your Kids Need to Know appeared first on McAfee Blog.
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