Child sexual exploitation and abuse is a multibillion-dollar industry – new report shows who benefits

The sexual exploitation and abuse of children has become a multibillion-dollar global trade. The chilling reality of this profit-driven, highly lucrative industry is laid bare by new findings from myself and colleagues at the University of Edinburgh’s Childlight Global Child Safety Institute.

Our new report shows child abuse isn’t just a crime restricted to a hidden corner of the dark web. Based on a review of 20 publications across multiple disciplines (including big data reports, systematic reviews, discussion papers and qualitative studies), the report paints a picture of the financial mechanisms enabling abuse on a global scale.

Our previous work estimated that 3.5% of children globally had experienced sexual extortion in the last year. This is when children and their families face threats to share sexual content of a child if they do not comply with monetary demands.

Offenders aren’t the only ones who profit. Financial institutions, tech companies and online payment platforms — sometimes unknowingly, sometimes by omission — facilitate the flow of profits made from the abuse of children. Some of the money moves through legitimate payment systems and advertising revenue streams. Other financial flows are deliberately obscured through cryptocurrencies and the dark web.

Many organisations do take proactive steps to detect and report this activity. Inhope, a global network of hotlines, works with law enforcement and tech companies to remove child sexual abuse material and disrupt the associated financial streams. And the National Center for Missing & Exploited Children in the US receives and acts on reports from tech companies of child sexual abuse material, alerting companies and authorities to suspicious financial activity.

But these systems remain inadequately checked or challenged by financial regulators and laws.

Sexual extortion has also spawned the creation of companies that provide cybersecurity and reputation management services to victims to combat the extorters. Fees are often paid upfront and can amount to thousands of dollars. In effect, this forces victims to pay for a solution to the crime committed against them.

There is also a market for the sale of child sexual abuse material, both recorded and livestreamed, delivering profit for the offender and the systems they use. One video file of on-demand child sexual abuse can cost US$1,200 (£940). With the estimated prevalence of technology-facilitated abuse experienced by 300 million children annually, this is a massive industry.

The scale of profit is staggering, in contrast with the price some perpetrators pay to sexually abuse children. One particularly haunting finding is abusers paying as little as 27 pence (UK) to offend against children.

Taken together, the industry is estimated to reach multiple billions of dollars annually.

While the financial value placed on a child may be measured in pennies, the lifelong cost to that child in trauma, health and opportunity is incalculable. It is a grotesque marketplace where takings are vast and suffering is immeasurable.

Changing markets

Our findings also expose how perpetrators themselves are rapidly changing their approach, constantly exploiting gaps in legislation and regulatory frameworks to continue harming children.

For example, we find in the Philippines, a livestreaming hotspot, that technology is enabling large organised crime syndicates to be replaced by smaller, covert groups. Often operating within families, these perpetrators have profited as crime shifts online, facilitated by cryptocurrency and digital payment systems.

The proliferation and growing sophistication of generative artificial intelligence (AI) has also opened troubling new frontiers. Child abusers can now produce realistic AI-generated child sexual abuse material, using the photos of real children in order to extort. This can make detection harder and muddy the water in terms of legal accountability. Many jurisdictions are still playing catch-up.

Read more: Our research on dark web forums reveals the growing threat of AI-generated child abuse images

Stopping the flow of money and abuse

The world’s financial and tech infrastructure — knowingly or unknowingly — has become complicit in sustaining these crimes. In some cases, advertising revenue generated from abusive content on mainstream platforms flows back into criminal networks with little-to-no intervention. Cryptocurrencies allow for rapid and anonymous transfers of payment between perpetrators and content creators.

There is no one-size-fits-all approach to preventing child sexual exploitation, and the changing nature of the market and technology makes it even harder.

One promising measure is the use of blocklists — lists of known child sexual abuse material that, once identified, can be blocked across major internet service providers. These lists compiled and shared by organisations including Internet Watch Foundation are proving invaluable in stopping people from accessing abuse material.

However, even here, our findings are disturbing. On average, there are five attempts per second globally to access material that has already been placed on these blocklists.

We need to start addressing child sexual exploitation and abuse as a public health emergency, with a coordinated response to halt its growth. This requires not just reactive law enforcement measures, but proactive prevention strategies that tackle the financial and technological ecosystems that sustain the abuse. For example, imposing regulation and sanctions on financial institutions that do not take appropriate steps to prevent their services being exploited.

Deborah Fry receives funding from Human Dignity Foundation and UK Research and Innovation.