Reputation transferability across contexts: Maintaining cooperation among anonymous cryptomarket actors when moving between markets

BackgroundBuyers and sellers of illegal drugs in cryptomarkets have been found to overcome trust issues created by anonymity and the lack of legal protection with the help of reputation systems. Cryptomarkets rarely operate for longer than a year before closing or getting shut down due to external shocks, such as law enforcement operations. This results in large flows of users migrating between market platforms. An important question in order to better understand why cryptomarkets recover quickly after external shocks is: to what extent can reputation be carried over between different markets? This problem is non-trivial given the anonymity of cryptomarket users and the fact that reputation is tied to a user's online identity. Here we analyze conditions under which sellers choose to migrate with the same identity and whether reputation history from previous cryptomarkets yields benefits in new contexts.MethodsWe analyze sellers’ migration in three cryptomarkets (Abraxas, Agora and AlphaBay) and follow their reputation history by linking user accounts between marketplaces using the Grams database. We use longitudinal multi-level regression models to compare market success of migrant and non-migrant sellers. In total, the data contains more than 7,500 seller account and 2.5 million buyers’ reputational feedback messages over a period of 3 years.FindingsIt is predominantly the successful sellers with a large number of sales and high reputation who choose to migrate and maintain their identity using cryptographic methods after market closures. We find that reputation history from previous markets creates a competitive advantage to migrant sellers compared to market entrants.ConclusionReputation transferability embeds cryptomarket users beyond a single market platform, which incentivizes cooperative behavior. The results also suggest that reputation transferability might contribute to a quick recovery of online drug trade after shutdowns and accumulation of market share in the hands of a small fraction of successful sellers.     

Illicit drug prices and quantity discounts: A comparison between a cryptomarket,social media,and police data

BackgroundIllicit drugs are increasingly sold on cryptomarkets and on social media. Buyers and sellers perceive these online transactions as less risky than conventional street-level exchanges. Following the Risks & Prices framework, law enforcement is the largest cost component of illicit drug distribution. We examine whether prices on cryptomarkets are lower than prices on social media and prices reported by law enforcement on primarily offline markets.MethodsData consists of online advertisements for illicit drugs in Sweden in 2018, scraped from the cryptomarket Flugsvamp 2.0 (n = 826) and collected with digital ethnography on Facebook (n = 446). Observations are advertisements for herbal cannabis (n = 421), cannabis resin, hash (n = 594), and cocaine (n = 257) from 156 sellers. Prices are compared with estimates from Swedish police districts (n = 53). Three multilevel linear regression models are estimated, one for each drug type, comparing price levels and discount elasticities for each platform and between sellers on each platform.ResultsPrice levels are similar on the two online platforms, but cocaine is slightly more expensive on social media. There are quantity discounts for all three drug types on both platforms with coefficients between -0.10 and -0.21. Despite the higher competition between sellers on cryptomarkets, prices are not lower compared to social media. Online price levels for hash and cocaine are similar to those reported by police at the 1 g level.ConclusionMean prices and quantity discounts are similar in the two online markets. This provides support for the notion that research on cryptomarkets can also inform drug market analysis in a broader sense. Online advertisements for drugs constitute a new detailed transaction-level data source for supply-side price information for research.     

Sellers’ risk perceptions in public and private social media drug markets

IntroductionFrom the early use of pagers and cellular phones to the darknet and smartphones, technological developments have facilitated drug deals in various ways, especially by altering time and space boundaries. Traditional drug market literature theorises about how physical markets, within which sellers act according to their risk perceptions and motivation, are led by supply, demand, and enforcement. However, there is an almost absolute research gap in understanding how this relates to digital markets and social media markets in particular. It is expected that the plasticity of technology makes digital markets highly mouldable so that the sellers are able to shape markets according to their use.Research aimThe aim of the study is to describe and understand drug dealing on social media within the structure of existing markets. We aim to do so by analysing how drug sellers’ risk perceptions and motivations form and are formed by social media technology.MethodsWe conducted a three-month digital ethnographic study on Facebook and Instagram in the five Nordic countries (Denmark, Finland, Iceland, Norway, and Sweden), as well as 107 semi-structured qualitative interviews with sellers (2/3 of the sample) and buyers (1/3 of the sample) using online markets within the same countries.ResultsDrug dealing on social media varies according to the structure of the chosen media and users’ risk perceptions and motivations. Two market forms are suggested: 1) public digital markets (e.g., Facebook groups and Instagram) allow sellers to expand their customer lists, but the risk is quite high, while 2) private digital markets are based on one-on-one communication and demand greater knowledge but are perceived as more secure. Sellers choose which media to use and how to use them based on perceived risk and, therefore, have a significant impact on the formation of social media drug markets.     

Illicit drugs policy through the lens of regulation

The application of regulatory theory to the problem of illicit drugs has generally been thought about only in terms of ‘command and control’. The international treaties governing global illicit drug control and the use of law enforcement to dissuade and punish offenders have been primary strategies. In this paper I explore the application of other aspects of regulatory theory to illicit drugs—primarily self-regulation and market regulation. There has been an overreliance on strategies from the top of the regulatory pyramid. Two other regulatory strategies – self-regulation and market regulation – can be applied to illicit drugs. Self-regulation, driven by the proactive support of consumer groups may reduce drug-related harms. Market strategies such as pill-testing can change consumer preferences and encourage alternate seller behaviour. Regulatory theory is also concerned with partnerships between the state and third parties: strategies in these areas include partnerships between police and pharmacies regarding sale of potential precursor chemicals. Regulatory theory and practice is a rich and well-developed field in the social sciences. I argue that governments should consider the full array of regulatory strategies. Using regulatory theory provides a rationale and justification to strategies that are currently at the whim of politics, such as funding for user groups. The greater application of regulatory approaches may produce more flexible and structured illicit drug policies.     

Drug markets and distribution systems

Illicit drug markets are a part of our society. How visible and detrimental they are to their host communities has shaped enforcement action against them. Until the mid-1990s, open street-based markets were probably where most illicit drugs of dependency were bought and sold. With the steady rise in market activity, communities tired of the damage these markets caused, and demanded a police response. Quite separately, but around the same time, there was a proliferation in the ownership and use of mobile phones. Together, they provided open markets with both the impetus and the means to evolve into closed markets. Now this type of market is probably where most drugs of dependency are bought and sold. This article offers a classification of retail markets, distinguishing between open markets, closed markets, crack or dealing houses and other forms of retail system, and examines variations in the structure of distribution within these markets – mainly in the United Kingdom. At the same time, we also examine the available evidence on the ‘middle level’ drug markets that support these retail markets; and consider the relationship between supply, demand and enforcement, examining the adaptations that markets will make to enforcement and the perverse effects that enforcement may cause.     

Effect of drug law enforcement on drug market violence: a systematic review

Violence is amongst the primary concerns of communities around the world and research has demonstrated links between violence and the illicit drug trade, particularly in urban settings. Given the growing emphasis on evidence-based policy-making, and the ongoing severe drug market violence in Mexico and other settings, we conducted a systematic review to examine the impacts of drug law enforcement on drug market violence. We conducted a systematic review using Preferred Reporting Items for Systematic Reviews and Meta Analyses (PRISMA) guidelines. Specifically, we undertook a search of English language electronic databases (Academic Search Complete, PubMed, PsycINFO, EMBASE, Web of Science, Sociological Abstracts, Social Service Abstracts, PAIS International and Lexis-Nexis), the Internet (Google, Google Scholar), and article reference lists, from database inception to January 24, 2011. Overall, 15 studies were identified that evaluated the impact of drug law enforcement on drug market violence, including 11 (73%) longitudinal analyses using linear regression, 2 (13%) mathematical drug market models, and 2 (13%) qualitative studies. Fourteen (93%) studies reported an adverse impact of drug law enforcement on levels of violence. Ten of the 11 (91%) studies employing longitudinal qualitative analyses found a significant association between drug law enforcement and drug market violence. Our findings suggest that increasing drug law enforcement is unlikely to reduce drug market violence. Instead, the existing evidence base suggests that gun violence and high homicide rates may be an inevitable consequence of drug prohibition and that disrupting drug markets can paradoxically increase violence. In this context, and since drug prohibition has not meaningfully reduced drug supply, alternative regulatory models will be required if drug supply and drug market violence are to be meaningfully reduced.     

Avoiding the stigma. A qualitative study of socially included women's experiences of drug use and dealing,health services and the police in France

The figure of drug user and dealer is stigmatized, linked to violence and illness. This is due to a reductionist discourse which implements othering processes generating scapegoat figures in the drug world. All drug users and sellers are assimilated with these spoiled identities in the media or in drug policies, while the reality is much more diverse. This article draws on relational sociology to focus on figures who are the antithesis of stereotypes: socially integrated women who use or sell drugs (WUSD) and are invisible to the health and control enforcement agencies. By seeking to avoid the stigma of the drug user's and dealer's identities, how do socially included WUSD distance themselves from the control enforcement agencies and health institutions? This qualitative research is based on 26 semi-structured interviews conducted with socially included WUSD in France. Participants were recruited using a snowball sampling strategy. It appears that the participants normalized their drug use and integrated it into their professional and personal lives. Some were drug user-dealers and had social supply practices, selling the drugs they used to their friends in order to finance their consumption. None of the participants have ever been in contact with harm reduction and addiction services, both because they do not identify with the users of these services, and because these services are not designed to support this population. With the police, the participants play gender games and show their social inclusion to protect themselves from arrest. In both cases, the stigmatized figure of the drug user and drug seller alienate the participants from the health systems and control enforcement agencies. One of the consequences of the othering process is the invisibility of those who do not want to be identified as “others” by the health and law enforcement services. Rethinking drug policy is essential to reach populations that may need information and support.     

Delivery dilemmas: How drug cryptomarket users identify and seek to reduce their risk of detection by law enforcement

BackgroundCryptomarkets represent an important drug market innovation by bringing buyers and sellers of illegal drugs together in a ‘hidden’ yet public online marketplace. We ask: How do cryptomarket drug sellers and buyers perceive the risks of detection and arrest, and attempt to limit them?MethodsWe analyse selected texts produced by vendors operating on the first major drug cryptomarket, Silk Road (N = 600) alongside data extracted from the marketplace discussion forum that include buyer perspectives. We apply Fader’s (2016) framework for understanding how drug dealers operating ‘offline’ attempt to reduce the risk of detection and arrest: visibility reduction, charge reduction and risk distribution.ResultsWe characterize drug transactions on cryptomarkets as ‘stretched’ across time, virtual and physical space, and handlers, changing the location and nature of risks faced by cryptomarket users. The key locations of risk of detection and arrest by law enforcement were found in ‘offline’ activities of cryptomarket vendors (packaging and delivery drop-offs) and buyers (receiving deliveries). Strategies in response involved either creating or disrupting routine activities in line with a non-offending identity. Use of encrypted communication was seen as ‘good practice’ but often not employed. ‘Drop shipping’ allowed some Silk Road vendors to sell illegal drugs without the necessity of handling them.ConclusionSilk Road participants neither viewed themselves as immune to, nor passively accepting of, the risk of detection and arrest. Rational choice theorists have viewed offending decisions as constrained by limited access to relevant information. Cryptomarkets as ‘illicit capital’ sharing communities provide expanded and low-cost access to information enabling drug market participants to make more accurate assessments of the risk of apprehension. The abundance of drug market intelligence available to those on both sides of the law may function to speed up innovation in illegal drug markets, as well as necessitate and facilitate the development of law enforcement responses.     

Retail price as an outcome measure for the effectiveness of drug law enforcement

One outcome measure of law enforcement effectiveness is the reduction in drug consumption which occurs as a result of law enforcement interventions. A theoretical relationship between drug consumption and retail price has promoted the use of retail price as a surrogate measure for consumption. In the current article, retail price is examined as a potential outcome measure for the effectiveness of law enforcement.The predictions regarding the relationship between law enforcement intensity and price are only partially supported by research. Explanations for the disconnect between the drug law enforcement activity and retail price include: rapid adaptation by market players, enforcement swamping, assumptions of rational actors, short-run versus long-run effects, structure of the illicit market, simultaneous changes that affect price in perverse ways, the role of violence in markets, and data limitations. Researchers who use retail price as an outcome measure need to take into account the complex relationship between drug law enforcement interventions and the retail price of illicit drugs. Viable outcome measures which can be used as complements to retail price are worth investigation.     

Are suppression and deterrence mechanisms enough? Examining the “pulling levers” drug market intervention strategy in Peoria,Illinois, USA

BackgroundPolice agencies across the globe enforce laws that prohibit drug transportation, distribution, and use with varying degrees of effectiveness. Within the United States, law enforcement strategies that rely on partnerships between criminal justice officials, neighbourhood residents, and social service providers (i.e., collaborative implementation) have shown considerable promise for reducing crime and disorder associated with open-air drug markets. The current study examines a comprehensive police enforcement strategy conducted in Peoria, Illinois (USA) designed to reduce patterns of crime and violence associated with an open-air drug market in a specific neighbourhood.MethodsChange in neighbourhood crime was assessed using Autoregressive Integrated Moving Average (ARIMA) interrupted time series analysis. Further, target area residents were surveyed to gauge their awareness of the police intervention as well as perceived changes in local crime patterns.ResultsAnalyses indicate that the intervention did not produce significant changes in neighbourhood crime offense rates between pre- and post-intervention periods. In addition, the majority of surveyed residents within the target area did not demonstrate an awareness of the intervention nor did they report perceived changes in local crime patterns.ConclusionsStudy findings suggest that police-led approaches in the absence of high levels of community awareness and involvement may have less capacity to generate crime-control when focusing on open-air drug markets. We propose that police agencies adopting this strategy invest considerable resources toward achieving community awareness and participation in order to increase the potential for attaining significant and substantive programmatic impact.     

Controlling and policing substance use(rs)

Controlling drug use--a dynamic, global, politicalized process--is reviewed in terms of selected types of drugs, "natural levels" of drug demand and use, drug markets and the drug market environment, types of traffickers, illicit drug trade profits, approaches to drug control ("War on Drugs", "Zero Tolerance" programs and policies, "normalizing" and legalizing selected drugs), including UN's then relatively recent "Balanced Approach" and facets of drug law enforcement (drug prices and purity levels and values of drug seizures), including various rarely noted benefits to intervention programs and control agents. Unresolved issues and needed "tools" are noted while considering the implications of the first UN's World Drug Report data.     

CONTROLLING AND POLICING SUBSTANCE USE(RS)*

Controlling drug use—a dynamic, global, politicalized process—is reviewed in terms of selected types of drugs, “natural levels” of drug demand and use, drug markets and the drug market environment, types of traffickers, illicit drug trade profits, approaches to drug control (“War on Drugs”, “Zero Tolerance” programs and policies, “normalizing” and legalizing selected drugs), including UN's then relatively recent “Balanced Approach” and facets of drug law enforcement (drug prices and purity levels and values of drug seizures), including various rarely noted benefits to intervention programs and control agents. Unresolved issues and needed “tools” are noted while considering the implications of the first UN's World Drug Report data.     

Prevention Through Enforcement

Criticisms of supply side drug control policies sometimes lead to a view that enforcement has little or no place in drug policy at all. Such a view is contested in this paper. Particular forms of low level policing can and do restrain drug markets. Policing that is aimed at removing 'heavy' users and at deterring novice users is considered. Generally, it is argued that enforcement can make drug markets more hazardous and less predictable places to be for drug sellers and buyers, thereby limiting the overall supply of drugs. To the extent that enforcement can achieve these ends it can be regarded as performing a preventative function. It is therefore concluded that drug enforcement does have a part to play in any balanced set of drug control policies.     

Attitudes of police officers towards syringe access,occupational needle-sticks,and drug use: A qualitative study of one city police department in the United States

Removal of legal barriers to syringe access has been identified as an important part of a comprehensive approach to reducing HIV transmission among injecting drug users (IDUs). Legal barriers include both “law on the books” and “law on the streets,” i.e., the actual practices of law enforcement officers. Changes in syringe and drug control policy can be ineffective in reducing such barriers if police continue to treat syringe possession as a crime or evidence of criminal activity. Despite the integral role of police officers in health policy implementation, little is known of their knowledge of, attitudes toward, and enforcement response to harm-minimisation schemes. We conducted qualitative interviews with 14 police officers in an urban police department following decriminalisation of syringe purchase and possession. Significant findings include: respondents were generally misinformed about the law legalising syringe purchase and possession; accurate knowledge of the law did not significantly change self-reported law enforcement behaviour; while anxious about accidental needle sticks and acquiring communicable diseases from IDUs, police officers were not trained or equipped to deal with this occupational risk; respondents were frustrated by systemic failures and structural barriers that perpetuate the cycle of substance abuse and crime, but blamed users for poor life choices. These data suggest a need for more extensive study of police attitudes and behaviours towards drug use and drug users. They also suggest changes in police training and management aimed at addressing concerns and misconceptions of the personnel, and ensuring that the legal harm reduction programs are not compromised by negative police interactions with IDUs.     

Civic Engagement in California Cannabis Policy Development

ABSTRACT

During the regulatory drafting process, California considered allowing police officers to become licensed owners of cannabis businesses, an action that would have codified a conflict of interest (COI), allowing police to exert influence in two market strata, enforcement and licensure. Up until then, no state specifically excepted law enforcement from COI prohibitions, making California’s proposed medical cannabis regulation unique. We performed two 50-state surveys and examined 298 public comments submitted to the Bureau of Cannabis Control during the initial medical cannabis rulemaking process in June 2017. After public comments, the Bureau withdrew this provision. However, that the exception was even considered is cause for concern in this new area of policy development. The progression from proposed medical cannabis rules to emergency rule adoption and now, into proposed final regulations, highlights the value of civic engagement with the rulemaking process. Jurisdictions should adopt bright-line COI rules within their cannabis codes that limit the relationships that law enforcement may have with the private cannabis markets.     

Studying illicit drug markets: Disciplinary contributions

This paper provides a reflective account of the different disciplinary approaches to studying illicit drug markets. The term ‘drug market’ is used widely in illicit drug research, and means different things to different researchers. An economist may have a very specific view of what is meant by a drug market, and that will differ from one held by an ethnographer. The paper endeavours to describe and explain five different disciplinary approaches to studying drug markets—ethnographic and qualitative approaches; economic approaches; behavioural and psychological research; population-based and survey research; criminology and law enforcement evaluation. Each discipline has strengths and limitations. I do not argue for the supremacy of one approach, but that we need to appreciate the different approaches and develop better multi-disciplinary models.     

Exploring willingness to engage with law enforcement among syringe service program participants in New York City

BackgroundIn New York City (NYC), 1,487 unintentional overdose deaths occurred in 2017, largely driven by the presence of fentanyls in the illicit drug market. In response to fentanyl-involved overdoses, law enforcement entities both nationally and in NYC have taken a new interest in overdose events. This study explored attitudes toward and willingness to engage with police among NYC syringe service program (SSP) participants, a population likely to have had experiences with overdose and/or police.MethodsBetween March and July 2017, 332 surveys were conducted with a convenience sample of NYC SSP participants.ResultsMost respondents (76%) reported ever being arrested for a drug-related crime. Few respondents (5%) reported a previous arrest in the context of an overdose event. Of the 62 respondents who had witnessed an overdose in the previous 12 months, 25% had not called 911 because of concerns about law enforcement. Over half (51%) of all respondents reported they would not be willing to aid police in their investigation of the person who supplied the drugs.ConclusionPolice investigations of both fatal and non-fatal drug overdose events have the potential to exacerbate mistrust of law enforcement and discourage emergency medical service utilization among PWUD.     

Predictors of using social media to purchase drugs in New Zealand: Findings from a large-scale online survey

BackgroundThere are increasing reports of social media being used to buy and sell illegal drugs internationally. Studies of social media drug markets to date have largely involved general explorations of social media drug transactions in select countries. Social media drug markets may operate differently for different drug types and in different country contexts.AimsTo identify predictors of the use of social media to purchase cannabis, methamphetamine, LSD and ecstasy/MDMA in New Zealand using a large-scale online survey sample.MethodsThe annual New Zealand Drug Trends Survey (NZDTS), an online convenience survey promoted via targeted Facebook™ campaign, was completed by 23,500 respondents aged 16+. Logistic regression models were fitted to identify demographic, drug use and drug market predictors of reporting the use of social media to purchase cannabis, methamphetamine, LSD and ecstasy/MDMA.ResultsFifty-one percent of the sample had purchased cannabis, methamphetamine, ecstasy/MDMA or LSD in the past six months, of which 22% had done so via social media (n = 2,650). Cannabis was the drug type most purchased from social media among drug purchasers (24%), followed by ecstasy/MDMA (13%). Sixty percent of social media purchasers had used Facebook™, 48% Snapchat™, and 20% Instagram™. The leading advantages of social media purchasing were “high convenience” (74%), and “fast transaction speed” (43%). Younger age was a significant predictor of social media purchasing for all drug types (particularly among 16–17 year olds). Purchasing from someone identified as a “drug dealer” was a predictor of social media purchasing among respondents for all drug types.ConclusionSocial media drug markets may have significant implications for drug purchasing by youth through providing greater access to supply and breaking down age-related barriers between social supply and commercial drug markets. Our findings highlight the importance of incorporating social media platforms into youth drug prevention and harm minimisation strategies.     

‘We realised we needed a new approach’: Government and law enforcement perspectives on the implementation and future of the drug decriminalisation policy in vietnam

In 2009, Vietnam officially decriminalised drug use through amendments to the criminal law. The amendments outlined explicitly that illicit drug use would be seen as an administrative violation, but not a criminal offence. This legal transition has not been without implementation challenges, and police particularly have struggled to find a balance between drug law enforcement and decriminalisation. Despite being a health-orientated drug policy amendment, in practice it allows police to send suspected drug users to compulsory treatment centres without judicial oversight and people who use drugs continue to face challenges in their interface with law enforcement which can negatively impact access to harm reduction and community-based treatment programs. Using policy desk research combined with indepth interviews with 14 key informants from people representing a range of relevant Vietnamese government (n = 10) and non-government agencies (n = 4), this paper explores some insights and considerations into how decriminalisation of drug use in the amended law was implemented. We explore key informant perspectives into how the decriminalisation amendment could be implemented more effectively in order to improve health outcomes for people who use drugs in Vietnam through re-envisioned police protocols and practices. Findings show that while decriminalising drug use in Vietnam was designed as a progressive and health-orientated drug policy, the ongoing disconnect between the health intent of the policy and the police-led oversight of its implementation in the community persists. Part of this disconnect is explained by the lack of training and clear protocols that would enhance the police in their ability to contribute to the health intent of the policy rather than continue to view drug use through a drug law enforcement only lens. The paper calls for further collaboration across policing and the health and community-based organisations delivering services for people who use drugs. We suggest that through developing a deeper understanding of the interplay between policing and the implementation of harm reduction policy and programs, decriminalisation can co-exist within a broader and deeply entrenched drug control strategy in Vietnam.