[LINK] itNews: 'Police struggle with online drug networks'

[Roger Clarke]

Police struggle with online drug networks
Darren Pauli
Sep 11, 2012 7:15 AM (46 minutes ago)
http://www.itnews.com.au/News/315014,police-struggle-with-online-drug-networks.aspx

Report paints bleak picture for narcotics enforcement.

Australian law enforcement agencies are struggling to deal with 
booming online illicit drug markets that promise users high levels of 
security and anonymity, a confidential report has revealed.

The report, "Hidden in Plain Sight" issued by the Queensland Crime 
and Misconduct Commission and obtained by iTnews' sister publication 
SC Magazine, paints a bleak picture for narcotics enforcement. 

It shows that police are struggling to cope as traditional drug 
distribution networks give way to burgeoning online drug stores.

The May 2012 report focuses on the notorious Silk Road drug 
marketplace, a veritable eBay of illicit drugs that protects buyers 
and sellers with encryption via the Tor network.

The popularity of the website is quickly expanding.

Accurate numbers are difficult to acquire, however the report notes 
that the number of registrations for the Silk Road forum rose by 7762 
on February 12 to almost 20,000 by the beginning of May. The number 
of forum posts rose 97 per cent to 199,538 over the same time.

The number of legitimate users of the Silk Road marketplace could be 
much higher.

Each element of Silk Road transactions is wrapped in security. The 
site operates as a hidden service that hides its server IP address, 
while users connect through the Tor network which is constantly 
tested for security holes by thousands of users.

Users buy drugs, weapons and other contraband through the untraceable 
BitCoin online currency.

Silk Road users further boost security by discussing techniques to 
hide drugs from customs and postal services, and by vetting the 
integrity of sellers and their products. 

This information sharing was so effective that the report notes 
existing "forensic examination of posted items and packaging yields 
no information", pointing to the sophistication of postage techniques.

The report said the impact of the open discussion on the security of 
the marketplace "cannot be underrated" and suggests law enforcement 
agencies should heed the lessons and use "power to the crowd" to 
combat the Silk Road.

This would involve an audit of police skills across Australia to map 
strengths and weaknesses within police cyber units and improve 
training. It would compliment the previously stated priority given by 
Australian police for "reducing cross-border barriers to law 
enforcement and prosecution".

The report flagged possible attacks against the Tor network, and 
cited previous research including Perez-Gonzalez and Crandall's 
timing and fingerprint analysis, and man-in-the-middle attacks 
against exit nodes. It said it was unknown if the latter attack was 
possible against Tor hidden services. 

Police could also benefit from research and development undertaken 
within unspecified national security agencies.

Other avenues to attack the Silk Road flagged in the report 
include social engineering, intersections between online transactions 
and the real world, and by targeting user error.

"For example, compulsive users ... may become frustrated by the 
relatively slow speed of Tor as compared to broadband internet, which 
may tempt them to stray off Tor," the report said.

Further frustrating police efforts was the absence of the Australian 
tax office, customs and state crime commission agencies from 
the Australia / New Zealand Policing Advisory Agency (ANZPAA).

This hindered the joint initiative which sees police ministers and 
commissioners from both sides of the Tasman provide policy advice to 
improve cross-jurisdictional policing initiatives.

Copyright © SC Magazine, Australia


-- 
Roger Clarke                                 http://www.rogerclarke.com/
			            
Xamax Consultancy Pty Ltd      78 Sidaway St, Chapman ACT 2611 AUSTRALIA
                    Tel: +61 2 6288 1472, and 6288 6916
mailto:Roger.Clarke at xamax.com.au                http://www.xamax.com.au/

Visiting Professor in the Faculty of Law               University of NSW
Visiting Professor in Computer Science    Australian National University