The State Statistics Service in Russia reported that sales of counterfeit whiskey in the country may have been worth $230 Million (8 Billion Rubles) in 2013.
Based on sales and import tracking data, authorities in Russia state that retailers sold 9.9 million more liters of whiskey than officially imported. Officials believe that this figure represents the number of counterfeit whiskey bottles sold in the country.
In 2012, an estimated 7.8 million liters of fake whiskey was sold in Russia.
Media in Russia reported that whiskey is the most popular alcohol to be counterfeited in the country, followed by rum and tequila.
Source: RIA Novosti, “Russians Drank 10M Liters of Counterfeit Whiskey in 2013,” Moscow Times, February 10, 2014.
In a report by NBC News, the annual turnover of cyber crime in Russia was estimated to be $2 Billion. The hackers based in Russia who contribute to this black market sell a wide range of computer viruses, malware, hacking tools and stolen credit card information on underground forums.
An example of this market was seen in the stolen credit cards from Target. The program that was used to hack into Target was traced back to a 17 year old hacker from St. Petersburg. The hacker allegedly sold the program on underground hacker sites for $2,000. Security experts have been able to determine at least 40 different hackers used the program to hack into US retail stores.
Another example of this market is the spammers from Russia, who make up to $60 Million a year from their services.
(More prices for hacking services on the black market.)
Russia’s cyber crime economy is full of expert programmers and engineers. With its universities producing highly trained mathematicians and engineers, there is an abundant of talent in Russia. However, the legitimate economy is unable to absorb all these programmers, and those that do find employment are not highly paid. The salary for an average computer programmer in Russia is $24,000 a year.
Source: Ben Plesser, “Skilled, Cheap Russian Hackers Power American Cybercrime,” NBC News, February 5, 2014.
Security services in Russia have shut down over 61,000 illegal casinos and gambling dens across the country since a gambling law took effect in 2009.
A total of $17.1 Million in fines have been levied to owners of underground gambling parlors between 2009 and 2013. During the enforcement raids, over 796,000 slot machines and other gambling machines were seized by police.
The 2009 gambling law allowed gambling to be permitted in 4 rural regions, thus creating a black market across the country for illegal casinos. Most of the illegal gambling houses operate under the cover of bingo halls or Internet clubs.
At the end of 2012, security officials estimated that there were 500,000 illegal gambling halls operating across the country.
(All illegal gambling news.)
Source: “Russia Has Shut Down 61,000 Illegal Casinos Since Gambling Ban,” RIA Novosti, January 29, 2014.
According to Nigeria’s Ambassador to Russia, at least 200 Nigerian girls trafficking to Russia each month and forced to work in the prostitution industry.
(More human trafficking statistics.)
Source: “Nigeria: Monthly 200 Nigerian Girls Are Trafficked to Russia for Prostitution – Envoy,” All Africa, November 21, 2013.
It was previously reported that up to 42,000 people were dying in Russia each year due to consuming counterfeit alcohol and other illegally made alcohol.
After increase monitoring and enforcement by Russian security services, the number of deaths dropped to around 12,000 in 2010.
In an example of the smuggling, one man stopped in 2013 had 800 bottles of counterfeit vodka and 220 bottles of counterfeit cognac in his truck.
Source: “Russian Tells Cops Huge Moonshine Trove For Personal Use,” RIA Novosti, November 7, 2013.
In 2013, the global costs associated with cybercrimes against consumers was reported to be $113 Billion, according to a report by computer security firm Symantec.
The average cost per victim of cybercrime was $298, a 50 percent increase from the average costs in 2012. Consumers in the United States had the highest costs associated with cybercrime, with $38 Billion, followed by China with $37 Billion.
According to the report, there are 378 million victims of cybercrimes each year. The highest number of cybercrime victims were found in Russia, China and South Africa.
Nearly half of the consumers surveyed in the report do not use security precausions for their mobile devices, such as passwords, security software or file backups.
57 percent of mobile device users (tablets, smartphones) are unaware that security solutions are available for mobile devices.
Source: “2013 Norton Report,” Symantec. October 1, 2013.
The first cases of krokodil was reported in the United States in September 2013. Heath officials in the state of Arizona identified two cases of the drug in September.
The official name of the chemical is desomorphine, and it was first identified in Russia in 2002. The drug is made with a mix of over-the-counter headache pills that is mixed with iodine, gasoline, paint thinner or alcohol. Users in Russia have been using the drug as a cheaper form of heroin, since krokodil costs three times as less.
(How much does heroin cost?)
The drug eats away at the user’s skin tissue, which causes the skin to run scaly and green like a crocodile, thus creating the nickname. In 2011, Buzzfeed had a post that showed the effects of krokodil on the body. (Warning: Extremely Graphic Photos.)
According to security officials in Russia, the average lifespan of a krokodil user from the time they become addicted to the drug is 1 to 1.5 years. As of 2012, the rate of abuse of the drug is increasing by 50 to 70 percent each year in Russia. The value of the krokodil market in Russia was estimated to be worth $100 Million.
In the United States, the use of heroin has been increasing in recent years. According to the National Survey on Drug Use and Health. the use of heroin in the US increased by 66 percent between 2007 and 2011. With krokodil being a cheaper form of heroin, the risks of the drug spreading throughout the United States is high.
Source: Michael Winter, “Flesh-rotting ‘krokodil’ drug emerges in USA,” USA Today, September 26, 2013.
Internet security threat researchers identified Russian hackers who are offering access to malware-infected computers for rent. According to Webroot, the cost to rent a botnet depends on where the infected computers are located. These botnets can be used a various purposes, but are mostly used to attack servers in a distributed denial-of-service (DDos) attack.
The price to rent 1,000 infected computers in the United States costs $180. If the hosts are located in the United Kingdom, the price is $240. France and Russia both costs $200, Canada costs $270, and 1,000 infected computers located around the world costs $35. There is a daily limit of 20,000 hosts.
(See more cyber crime prices on the black market.)
Source: Dancho Danchev, “Cybercriminals sell access to tens of thousands of malware-infected Russian hosts,” Webroot Threat Blog, September 23, 2013.
According to a cyber security intelligence expert, criminal hackers are offering online courses that allows aspiring cyber criminals to learn how to hack and conduct cyber crime operations on the Internet. The courses offer lessons on hacking fundamentals such as online credit and debit card fraud, staying anonymous online, and how to evade law enforcement. These online hacking courses costs $75. Advance hacking techniques and methods such as how to DDos with a botnet are offered for $50.
Most of the instructors are Russian, and the classes are taught in Russian as well. They are generally advertised in popular hacking forums and networks. Classes are conducted online through Skype.
(More prices of services offered by hackers.)
Source: Jaikumar Vijayan, “Hacking courses offer cybercrooks tips on how to hone skills,” ComputerWorld, September 19, 2013.
Russia’s Counter-Narcotics Agency stated that there are nearly 1,900 organized crime groups and 150 major drug cartels that are trafficking illegal drugs into Russia. These illegal networks operate in Central Asia and use 100,000 drug mules to transport heroin from Afghanistan into Russia.
Security and intelligence services estimate that there are over 2,000 drug processing laboratories in Northern Afghanistan that produced heroin exclusively for the Russian market.
Nearly 1.5 million people in Russia are addicted to heroin, with roughly 30,000 people dying each year from heroin abuse. Nearly 150,000 people are arrested each year for drug offenses.
(Cost of heroin around the world.)
Source: “1,900 Gangs Smuggling Afghan Drugs to Russia – Anti-Narcotics Agency,” RIA Novosti, September 13, 2013.