NESTA Crime Online - University of Brighton Repository
NESTA Crime Online - University of Brighton Repository
NESTA Crime Online - University of Brighton Repository
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ecosystem at various levels, creating different business models. Some <strong>of</strong> these are<br />
explored below.<br />
2.3 Cybercrime business models<br />
Mimicking legitimate commercial businesses, cybercriminals in the<br />
underground economy operate on a free market principle applying principles<br />
such as volume discounts, commissions and pay as you go services.<br />
The third component <strong>of</strong> the cybercrime digital ecosystem is that <strong>of</strong> business models. The<br />
position <strong>of</strong> firms and their activities in the value chain helps determine how it<br />
approaches business and generates a pr<strong>of</strong>it; all definitions <strong>of</strong> business models<br />
emphasise how firms make money. Business models have the added attraction <strong>of</strong> being<br />
potentially comparable across industries. Therefore, for this study, business models will<br />
refer to the way in which different cybercriminals specifically generate revenue, and the<br />
nature <strong>of</strong> the arrangements they have with their suppliers and customers in the value<br />
chain. Suppliers and customers will vary depending on the activity in question. For<br />
instance in ‘infection and distribution’ malware writers would be the suppliers <strong>of</strong> malware<br />
to their customers, the botnet owners. However, in ‘exploitation’ activities, botnet<br />
owners may supply buyers with stolen credit card details.<br />
In any given industry, the methods <strong>of</strong> doing business may vary between actors and over<br />
time. Alternative ways <strong>of</strong> conducting business can arise and change with new<br />
technologies, market opportunities and competition.<br />
There has been much speculation about the level <strong>of</strong> organisation and pr<strong>of</strong>essionalism <strong>of</strong><br />
cybercriminal organisations. While too little is known about the types <strong>of</strong> business models<br />
that operate in the underworld, we do know that all cybercriminals want to make<br />
money. We also know that every business model has its own inherent strengths and<br />
weaknesses. This section intends to categorise business models in cybercrime to<br />
establish a base from which to examine their potential weaknesses.<br />
While some models are quite simple, other can be more intricately woven. This<br />
preliminary study has identified three predominant business models that are briefly<br />
introduced below: <strong>of</strong>f-line business models, Internet-based business models and hybrid<br />
models (combining the other two). Since most cybercrime activities take place online,<br />
Internet-based examples are more numerous. However, a significant component <strong>of</strong><br />
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