Organized crime is the driver of extortion, which plagues Latin America, taking advantage of institutional weakness. This crime, far from being an isolated event, undermines the security, economy, and democracy of the region.
In September, a bus strike in Peru’s capital that shut schools, affected hospital schedules, and prevented residents to move around shone a light on the power of extortion gangs. Many transport companies and at least three bus drivers were killed for refusing to pay the “protection fee,” AFP reported.
The changes in the dynamics of drug trafficking, brought about by the great antinarcotics work of law enforcement agencies in most of the countries of the hemisphere and the forces of globalization, prompted criminal organizations to diversify their activities, especially extortion, Colombian daily El Confidencial reported. Millions of citizens are forced to pay a fee for “protection,” generating an atmosphere of insecurity and fear in many communities.
Extortion from organized crime mainly impacts micro and small businesses, worsening poverty in the region and weakening local economies, the daily reported.
The impact of extortion is not limited to the economy. The crime also causes displacement of people and businesses, forcing them to leave their homes or close their businesses, punishing both business owners and workers, El Confidencial added.
According to Mexican daily Excélsior, the profits from extortion closely follow those of drug and human trafficking, and even surpass illegal mining in some cases. Extortionists employ a wide range of tactics, ranging from violence to corruption and the use of technology.
“The drug trade has turned extortion into a key tool for controlling regions. By diverting law enforcement resources to crimes such as racketeering, criminals partially ensure impunity for their other [illicit] activities,” Jorge Serrano, a member of the advisory team of Peru’s Congressional Intelligence Commission, told Diálogo on September 20.
For Serrano, extortion further weakens institutions in countries such as Mexico, a leader in fentanyl production, as well as Colombia and Peru, which dominate cocaine production. “Extortion, contract killings, and kidnapping are three of the same supported by narcotrafficking.”
Mexico
In Mexico, extortion grew by more than 45 percent between December 2018 and May 2024, the Confederation of Employers of the Mexican Republic said in a statement, seriously affecting crops such as avocados and lemons, Mexican daily El Economista reported. Only 3 percent of threats are reported, so these figures could be much higher.
This increase in extortion hits ordinary citizens, causing unemployment, inflation, and more violence, Spanish daily El País reported on August 2. The fragmentation of the cartels is driving this practice to finance themselves, Mexican news site Animal Político reported.
The targets of extortion are expanding considerably. Fishing, poultry, construction, transportation, gas stations, and even street commerce are severely affected. Sectors such as timber, fuel, and tobacco are also seriously damaged, the Mexican news site reported.
An example of this problem was experienced in Veracruz state, where in May organized crime demanded payment from parents to prevent their children from being physically injured, Mexican daily El Financiero reported. In Chiapas, 100 religious temples closed in February and a pastor was murdered for refusing to pay extortion fees, Diario de Yucatán reported.
“These criminals establish exclusion zones, entire neighborhoods submerged in terror, where they impose their law through extortion, contract killings, and kidnapping,” Serrano said. “The feeling of insecurity is such that inhabitants live in fear, unable to make a report or resist.”
“Faced with this escalation of extortion and violence authorities are overwhelmed and have limited resources,” Serrano added. “This modality only exists in drug producing and transit countries. It does not happen in the United States or Europe; only in Latin America, where we have weak police, judicial, and fiscal structure.”
In light of the situation, Mexico’s President Claudia Sheinbaum proposed on August 19 to elevate extortion to a serious crime, reported Mexican news site Imagen de Veracruz. Seventy-eight percent of Mexican states report various forms of extortion.
Colombia
The situation is no less critical in Colombia, where extortion increased by 300 percent in 2024. As organized crime evolved, extorsion went from being dominated by large armed groups to small criminal groups taking center stage, El Confidencial reported.
In addition, the presence of transnational criminal groups such as Venezuela’s Tren de Aragua, which operates in Colombia, Chile, and Peru, exacerbate the security situation, despite claims by the Venezuelan regime that the group has been dismantled. This organization is a threat to the region.
“The Tren de Aragua transformed the criminal landscape in Latin America. Let’s not forget that this group, like Venezuela’s dictatorship, seeks to create chaos and undermine democracies, expanding its operations characterized by extortion and violence, which benefits authoritarian regimes,” Serrano said.
To confront the scourge of extortion on its territory, Colombia has an extensive network of Unified Action Groups for Personal Freedom run by the National Army throughout the country. These groups are dedicated to combating kidnapping and extortion in a coordinated manner, the Colombian Army said.
Peru
In Peru, extortion is also growing at an alarming rate. Reports of extorsion have increased exponentially in recent years, rising from 2,000 in 2019 to more than 17,000 in 2023, and it is believed that those will reach 20,000 in 2024, Argentine news site Infobae reported.
“Narcotrafficking arms small criminal groups to turn them into hitmen and extortionists,” Serrano said. “In Peru, these groups threaten the same people daily to collect from them. Those who refuse to pay are victims of hitmen. In addition, criminals engage in micro-trafficking and act as informants for the big cartels.”
Peru created the Anti-Extortion Brigade in November 2023, with the aim of strengthening the fight against this crime. This specialized unit works together with police divisions and intelligence teams to dismantle these criminal networks, Spanish news agency EFE reported.
In Latin America, the increase in crime represents one of the main uncertainties in all social strata, says Serrano. “Drug trafficking is booming, and its expansion is strengthening extortion, contract killings, and kidnapping. It is a team that is reinforced by criminal terrorists, who plant bombs, explosives, and set businesses on fire.”
Solutions
The way out for these countries, Serrano believes, lies in requesting support from nations more developed in the analysis of criminal phenomena and the functioning of intelligence structures. “It is crucial to create national criminal intelligence directorates dedicated exclusively to combating these threats, which are increasingly complex, interrelated, pluri-offensive, and constantly expanding.”
“It is no longer enough with traditional police forces and current justice systems; it is necessary to establish such intelligence directorates, advised and trained with state-of-the-art technology, preferably from the United States or the European Union, where similar structures exist under different denominations, to face the new trends of transnational criminal organizations,” Serrano concluded.
