NESTA Crime Online - University of Brighton Repository

innovation networks to facilitate close cooperation between customers and product
developers. In the cybercrime industry ‘swarms’ can be born online – similar to what we
call below the ‘Internet community business model’ – but in most cases they combine
physical and online means for communication (online collaboration among individuals
who also meet in person). One distinct feature of the model is that swarms generate for
a specific purpose and for a limited period of time, until the goal is achieved (unlike the
Internet-based model). Although it is based on commitment and loyalty to achieve a
specific goal, this business model also lacks managerial hierarchy or the proprietary
ownership of ideas that is a feature of the loyalty model. Whilst there may well be a
swarm-type interaction that requires the major stakeholders to physically meet from
time to time, pure cybercriminals have no need for this business model as they have
built up anonymous and highly effective channels of communication that do not require
and even eschew face-to-face meetings and the negotiation of common cause beyond
cyberspace.
2.3.3 Internet-based business models
The growth of Internet-based businesses in the legitimate world has resulted in many
classifications and methods of conducting business over the Internet. E-commerce has
given rise to new kinds of business model. The benefits for customers and suppliers
offered by online businesses over physical channels have been highlighted by many
commentators, and include reduced operational and overhead costs, scale and scope,
access to wider markets, lower inventory and building costs, flexibility in sourcing
inputs, improved transaction automation and the ability to bypass intermediaries.
Cybercriminals benefit from all these advantages as well as enjoying anonymity. The
Internet provides criminals with a favourable environment to disguise their identity,
even amongst trusted colleagues, making them hard for law enforcement agencies to
locate.
Some models identified in our initial search include:
Advertising-based models: This model is used quite legally by companies that provide
content or services to visitors and sell advertising to businesses that want to reach those
visitors. The advertising based model is widely used by IRCs and web forum operators.
In the underground economy, advertised items include bundles of credit card numbers,
identity theft information, online banking information and skilled labour, where discounts
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