Police will be given expanded powers to compel people to provide passwords for devices seized during an arrest or roadside stop under a proposal by the NSW government.
The proposal would also result in penalties for refusing to answer questions to the NSW Crime Commission increasing to 10 years' imprisonment.
The legislation is part of a broader effort to address organised crime following a spate of public shootings, including a growing number of incidents involving child offenders.
Premier Chris Minns stresses the moral and ethical consequences of crime while also warning teenagers they may not receive their promised payout.
"We've seen examples of individuals who've taken these contracts expecting to be paid hundreds of thousands of dollars, and in the end they receive nothing," he told reporters on Thursday.
"It's genuinely brain dead to be involved in a contract on the dark web with an unknown associate on the other side of the world when the chances are you'll spend decades in prison as a result.
"This is a terrible bargain for young people."
In early June, a 17-year-old allegedly opened fire on a venue that intended to host a crime boss's wake, while four teenagers believed to be behind a spate of April shootings in southwest Sydney were arrested on Wednesday.
NSW Police Commissioner Mal Lanyon said he believed teen offenders came from a range of backgrounds and were hoping to make a quick profit.
He also theorised online gaming had "broken down the inhibitions of youth", leading them to get involved in crime.
However a 2021 literature review published by the federal government found video games had no meaningful impact on real-world aggressive behaviour.
Mr Minns believes the teenagers weren't deterred by prison because they did not think they would get caught.
"These are the most serious crimes that we have in the state and the NSW police are not shy about charging individuals who are responsible and seeing them go to jail for the rest of their lives," he said.
Decades of studies have shown youth detention is associated with increased risk of suicide, psychiatric disorders and substance abuse.
It also increases the likelihood of future offending.
Parents have been urged to monitor who their children are associating with and keep an eye on what they are doing online.
The NSW government has already passed legislation increasing penalties for public shootings, firebombings, and the recruitment of children by organised criminals.
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Kids Helpline 1800 55 1800 (for people aged 5 to 25)