What is it about?
It may seem counterintuitive, but frauds in the dark net are really rare, despite the lack of regulation. Darknet markets show a surprising level of trust, with 97.7% of reviews being positive. Consider that the percentage of positive reviews for the best and most famous high-tech companies is around 90%. In this study, we aim to provide an explanation for this social dilemma: how is it possible that in illegal markets, there is such a high and efficient level of cooperation?
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Why is it important?
Our results show that costly signals, which are harder to fake or manipulate, can effectively reduce fraud. Using escrow services (holding payments until the transaction is complete) and building a solid reputation are key tools in curbing opportunistic behavior. Additionally, a seller’s longevity on the platform is a strong indicator of reliability: the longer they’ve been active, the less likely they are to engage in fraud. On the other hand, fraudsters still exist and use persuasive tactics to deceive buyers. Despite the high level of trust in the market, they employ detailed product descriptions, sophisticated language, and a friendly tone (often referred to as 'cheap talk') to mislead buyers, increasing the risk of fraud."
Perspectives
In this paper, we aim to understand the social mechanisms that generate cooperation among humans, even in extreme conditions, such as illegal online markets, where there are several disincentives to cooperate. At the same time, this paper is crucial for understanding the fraudulent strategies that sellers use in the online context, such as employing persuasive techniques, positive and friendly language, and complex wording. In a time when fraud is prevalent in illegal online markets, this case study offers valuable insights into how to prevent fraud by altering the infrastructure of these markets
Filippo Andrei
University of Trento
Read the Original
This page is a summary of: Signalling strategies and opportunistic behaviour: Insights from dark-net markets, PLOS One, March 2025, PLOS,
DOI: 10.1371/journal.pone.0319794.
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