How Does the Hacker Economy Work?

A Whole New World of Hacking

Hacking has evolved considerably since the early days of the Internet. Today, the hacker economy is a highly organized marketplace where tech-savvy criminals can buy and sell stolen credit card information and other sensitive data in bulk. The black market of identity theft is a tough one to investigate, but global officials are coming to understand the growing sophistication used by hackers and their cronies.

Organized Hacker Marketplaces

The main purpose of the hacker economy is to obtain and sell stolen personal information to thieves. Hackers can also develop malware programs and sell them to the highest bidder. In both cases, these items are most often sold on IRC (Internet Relay Chat) chat rooms or Internet forums. "Traditional" e-commerce sites have even been used. Crooked buyers and sellers assemble at the online sites--with names such as CardingWorld.cc and Carder.info--to make deals. These sites are typically only up for 6 months before the thieves shut them down and move onto a new site. This is done to keep the federal government off their trail. Common information bought includes credit card information, bank PINs, mothers' maiden names, driver's license numbers and more.

Hackers Buy in Bulk

The online hacker typically sells stolen information in bulk. This is to ensure that the buyer has plenty of information to net successful identity theft. Invariably, some cards will have already been canceled or flagged as stolen. As such, buyers often place orders for hundreds or thousands of credit card numbers at a time. To pay for these ill-gotten gains, the hacker marketplace makes use of peer-to-peer payment sites.

Acquiring the Stolen Data

Before a hacker can sell your identity, he first needs to steal it. This is done in a number of ways, but the thief typically shoots for tactics that net bulk returns. This is often done by hacking into the secure corporate files of banks, retail stores or other outlets to acquire customer information. Some hackers also employ a strategy known as phishing. This involves tricking individuals into handing over their personal data through fraudulent e-mails or other means. Many times, they will present themselves as a legitimate bank or business and ask customers to verify their personal data.

Shutting Hackers Down

While the FBI and other organizations have made hacking considerably more risky in recent years, the hacker marketplace is proving incredibly difficult to shut down. The fact that it is a global economy, with many buyers and sellers coming from eastern Europe and other locations, makes it hard for local authorities to organize and capture the criminals. Crime task forces need to work with private corporations, banks and individuals to increase security and reduce the effects of the hacker marketplace.