1. Matt Jennings

2.  Introduction  Value Chains  Major value chains in the illegal market  Means of Communication  Conclusion

3.  513 million Chinese Internet users  Over 300 million online applications  More than 160 million subscribers  45% have experience theft of instant messaging accounts  32% have had their game accounts hacked

4.  Caused 832 million USD worth of damage  Over 90,000 participants  Easy money  Complex organization  Use legal web-based communication

5. 1. Person/business receives raw materials as input 2. Add value to the raw materials through different processes 3. Sell finished product to customers

6. 1. Real Assets Theft 2. Network Virtual Assets Theft 3. Internet Resources and Services abuse 4. Blackhat techniques, tools and training

7.  Primary motivation of cybercrime  Banking accounts, credit limits, balances of payment accounts, stock/fund accounts  The target  Techniques: Trojan Horses Phishing

9.  Large user base in online games  Virtual currency and equipment translates to real world money  No rigid law on “virtual property”

11.  Computing power, storage, bandwidth, IP addresses, network traffic, sensitive data  More resources = More Power  Botnets Email/messaging Drive by downloads “hanging-on” software  Click fraud/spam bots  DDoS extortion

12.  Engine of the underground economy  Hackers provide Products and Services to the economy  Products Malware, trojans, vulnerabilites Zero-day exploits  Services Attack a target Train new criminals

13.  Most is done through public channels  QQ chatting  Baidu Post Bar 100,000 illicit threads

15.  Most visible market is for advertisement and communication  Higher-tiered aspects are hidden  Cooperation between law enforcement and network security professionals  Legal countermeasures

16.  Chinese Internet  Value chains in illegal market  Means of Communication  New laws

17.  Muncaster, Phil. "Exposing China's Vast Underground Economy â ¢ The Register." Exposing China's Vast Underground Economy â ¢ The Register. The Register, 18 Aug. 2012. Web. 23 Sept. 2012..  Jianwei, Zhuge, Gu Liang, and Duan Haixin. Institute on Global Conflict and Cooperation. Rep. University of California, July 2012. Web. 27 Sept. 2012..