Welcome!

News Feed Item

First of Its Kind Economic Analysis of Cyber Black Market Reveals Unprecedented Global Maturity

New Juniper-Sponsored Research by RAND Corporation on Cyber Black Markets Finds a Mature Economy Mirroring the Innovation and Growth of a Free Market

SUNNYVALE, CA -- (Marketwired) -- 03/25/14 -- Juniper Networks (NYSE: JNPR), the industry leader in network innovation, finds the cyber black markets have a mature economy with characteristics akin to those of a thriving metropolitan city. A new global report, sponsored by Juniper Networks and conducted by the RAND Corporation, reveals several economic indicators that cyber black markets have reached unprecedented levels of maturity and growth.

While there has been significant research measuring different parts of the hacker black markets, RAND's report, "Markets for Cybercrime Tools and Stolen Data: Hackers' Bazaar," examines for the first time these markets in their entirety and applies economic analysis to better understand how they function. RAND found significant levels of economic sophistication, reliability, accessibility and resilience in the products, distribution channels and actors involved in the black markets.

RAND's report, confirmed by Juniper's vast experience in the network security ecosystem, suggests the cyber black markets are a mature and growing multi-billion-dollar economy with a robust infrastructure and social organization. RAND found these black markets, like any other economy, react to market forces like supply and demand, and continue to evolve.

News Highlights:
Juniper Networks likens the hacker black markets to a thriving metropolitan city with diverse communities, industries and interactions.

  • Storefronts - Like other forms of e-commerce, many data records, exploit kits and goods are bought and sold from storefronts -- which can encompass everything from instant messaging chat channels and forums to sophisticated stores. RAND found some organizations can reach 70 to 80,000 people, with a global footprint that brings in hundreds of millions of dollars.
  • Service Economy - RAND found that not only goods, but criminal services are available for purchase. These tools, sold on the black market as traditional software or leased like any other managed service, can help enable the most unskilled hackers to launch fairly elaborate and advanced attacks. For example, RAND found botnets, which can be used to launch a Distributed Denial of Service (DDoS) attack, are sold for as low as $50 for a 24-hour attack.
  • Hierarchal Society - Much like a legitimate business, RAND found it takes connections and relationships to move up the (cyber) food chain. Getting to the top requires personal connections and those at the top are making the lion's share of the money.
  • Rule of Law - There is indeed honor among thieves. RAND found many parts of the cyber black market are well structured, policed and have rules like a constitution. In addition, those who scam others are regularly banned or otherwise pushed off the market.
  • Education and Training - RAND identified widely available tools and resources on the black markets that teach criminals how to hack, including instructions for exploit kits and where to buy credit cards. This access to training has accelerated sophistication, a broader set of roles and has helped facilitate entry into the hacker economy.
  • Currencies - Transactions in the cyber black markets are often conducted by means of digital currencies. Bitcoin, Pecunix, AlertPay, PPcoin, Litecoin, Feathercoin, and Bitcoin extensions such as Zerocoin are a few. RAND found many criminal sites are starting to accept only digital crypto currencies due to their anonymity and security characteristics.
  • Diversity - While RAND found cybercriminals from China, Latin America and Eastern Europe are typically known for quantity in malware attacks, those from Russia tend to be thought of the leader in quality. RAND also found areas of expertise and focus among different countries. Many Vietnamese criminal groups, for example, mainly focus on e-commerce hacks. Cybercriminals from Russia, Romania, Lithuania and Ukraine focus on financial institutions. Many Chinese cybercriminals specialize in intellectual property. And U.S.-based cybercriminals primarily target U.S.-based financial systems. In addition to a diverse set of cybercriminals, RAND also found more cross-pollination between these groups than ever before.
  • Criminals - Even the criminal cyber black market has criminals. Known as "rippers," these specific bad guys do not provide the goods or services they claim.

The research report, "Markets for Cybercrime Tools and Stolen Data: Hackers' Bazaar," is based on in-depth interviews conducted by RAND between October and December 2013, with global experts who are currently or formerly involved in the market, including academics, security researchers, reporters, security vendors and law enforcement. It is the first of a series of reports from RAND that are sponsored by Juniper Networks.

Supporting Quotes:

"The security industry, government and legal communities must come together to establish new norms for how companies can more vigorously defend themselves against cyber-attacks. We must address the root cause behind the accelerated maturation of the cyber-crime market -- the very economics that drive its success. By disrupting the economics of hacking we can break the value chains that drive successful attacks. We must never lose the moral high ground, however, so we cannot go on the offensive and hack back, but we can no longer remain passive. By using forms of active defense such as intrusion deception we can identify, thwart and frustrate attackers. Active defense is a promising and exciting approach for addressing the rapidly evolving threat landscape."
- Nawaf Bitar, senior vice president and general manager, security business, Juniper Networks

Additional Resources

About Juniper Networks in Security
Juniper Networks builds secure and trusted networks with end-to-end security across every environment -- from the data center to campus and branch environments and to the device itself. Our security solutions give enterprise and service provider customers a competitive advantage as they set out to build the best networks on the planet.

About Juniper Networks
Juniper Networks (NYSE: JNPR) delivers innovation across routing, switching and security. From the network core down to consumer devices, Juniper Networks' innovations in software, silicon and systems transform the experience and economics of networking. Additional information can be found at Juniper Networks (www.juniper.net) or connect with Juniper on Twitter and Facebook.

Juniper Networks and Junos are registered trademarks of Juniper Networks, Inc. in the United States and other countries. The Juniper Networks and Junos logos are trademarks of Juniper Networks, Inc. All other trademarks, service marks, registered trademarks, or registered service marks are the property of their respective owners.

Statements in this press release concerning Juniper Networks' prospects, future products and prospective benefits to customers are forward-looking statements that involve a number of uncertainties and risks. Actual results or events could differ materially from those anticipated in those forward-looking statements as a result of certain factors, including delays in scheduled product availability, the company's failure to accurately predict emerging technological trends, and other factors listed in Juniper Networks' most recent report on Form 10-K and 10-Q filed with the Securities and Exchange Commission. All statements made in this press release are made only as of the date of this press release. Juniper Networks undertakes no obligation to update the information in this release in the event facts or circumstances subsequently change after the date of this press release, except as required by applicable law. Any future product, feature, enhancement or related specification that may be referenced in this press release are for information purposes only, are subject to change at any time without notice and are not commitments to deliver any future product, feature, enhancement or related specification. The information contained in this press release is intended to outline Juniper Networks' general product direction and should not be relied on in making a purchasing decision.

Add to Digg Bookmark with del.icio.us Add to Newsvine

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
While DevOps promises a better and tighter integration among an organization’s development and operation teams and transforms an application life cycle into a continual deployment, Chef and Azure together provides a speedy, cost-effective and highly scalable vehicle for realizing the business values of this transformation. In his session at @DevOpsSummit at 19th Cloud Expo, Yung Chou, a Technology Evangelist at Microsoft, will present a unique opportunity to witness how Chef and Azure work tog...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
We’ve been doing it for years, decades for some. How many websites have you created accounts on? Your bank, your credit card companies, social media sites, hotels and travel sites, online shopping sites, and that’s just the start. We do it often without even thinking about it, quickly entering our personal information, our data, in a plethora of systems. Sometimes we’re not even aware of the information we are providing. It could be very personal information (think of the security questions you ...
I'm a lonely sensor. I spend all day telling the world how I'm feeling, but none of the other sensors seem to care. I want to be connected. I want to build relationships with other sensors to be more useful for my human. I want my human to understand that when my friends next door are too hot for a while, I'll soon be flaming. And when all my friends go outside without me, I may be left behind. Don't just log my data; use the relationship graph. In his session at @ThingsExpo, Ryan Boyd, Engi...
SYS-CON Events announced today that ReadyTalk, a leading provider of online conferencing and webinar services, has been named Vendor Presentation Sponsor at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. ReadyTalk delivers audio and web conferencing services that inspire collaboration and enable the Future of Work for today’s increasingly digital and mobile workforce. By combining intuitive, innovative tec...
IoT offers a value of almost $4 trillion to the manufacturing industry through platforms that can improve margins, optimize operations & drive high performance work teams. By using IoT technologies as a foundation, manufacturing customers are integrating worker safety with manufacturing systems, driving deep collaboration and utilizing analytics to exponentially increased per-unit margins. However, as Benoit Lheureux, the VP for Research at Gartner points out, “IoT project implementers often ...
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
Is your aging software platform suffering from technical debt while the market changes and demands new solutions at a faster clip? It’s a bold move, but you might consider walking away from your core platform and starting fresh. ReadyTalk did exactly that. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, will discuss why and how ReadyTalk diverted from healthy revenue and over a decade of audio conferencing product development to start an innovati...
As ridesharing competitors and enhanced services increase, notable changes are occurring in the transportation model. Despite the cost-effective means and flexibility of ridesharing, both drivers and users will need to be aware of the connected environment and how it will impact the ridesharing experience. In his session at @ThingsExpo, Timothy Evavold, Executive Director Automotive at Covisint, will discuss key challenges and solutions to powering a ride sharing and/or multimodal model in the a...
WebRTC adoption has generated a wave of creative uses of communications and collaboration through websites, sales apps, customer care and business applications. As WebRTC has become more mainstream it has evolved to use cases beyond the original peer-to-peer case, which has led to a repeating requirement for interoperability with existing infrastructures. In his session at @ThingsExpo, Graham Holt, Executive Vice President of Daitan Group, will cover implementation examples that have enabled ea...
DevOps and microservices are permeating software engineering teams broadly, whether these teams are in pure software shops but happen to run a business, such Uber and Airbnb, or in companies that rely heavily on software to run more traditional business, such as financial firms or high-end manufacturers. Microservices and DevOps have created software development and therefore business speed and agility benefits, but they have also created problems; specifically, they have created software sec...