Protection rackets have been a scourge on businesses and communities for centuries. Lately, we are seeing it a lot in South Africa and this has caused a huge media buzz. Here’s a breakdown of their history and how they work:
- Origins in Organized Crime
Protection rackets originated in ancient times, but modern versions emerged in the 19th century with organized crime groups like the Mafia.
Example: The Sicilian Mafia’s “pizzo” system, where businesses paid for “protection” from violence and theft.
- Coercion and Intimidation
Protection rackets rely on coercion and intimidation to extract payments from victims.
Example: The Hell’s Angels motorcycle club’s extortion schemes in Canada, where businesses were threatened with violence if they didn’t pay.
- False Protection Services
Protection rackets often offer fake protection services, claiming to safeguard businesses from harm.
Example: The “security” services offered by the Japanese Yakuza to businesses in Tokyo’s red-light district.
- Involvement of Corrupt Officials
Corrupt officials often collude with protection rackets, providing them with legitimacy and protection.
Example: The infamous “Licence Raj” in India, where corrupt officials extorted bribes from businesses in exchange for protection.
- Modern Variations
Protection rackets have evolved, with new variations emerging in cyberspace and online marketplaces.
Example: The “sextortion” scams, where hackers demand payment in exchange for not releasing compromising information online.
Known cases include:
- The Five Families of New York City
- The Chicago Outfit
- The Russian Mafia
- The Triads in Hong Kong
Protection rackets continue to adapt and thrive, preying on vulnerable businesses and communities. Understanding their history and mechanics is crucial to combating these criminal enterprises.
Make sure you subscribe to the newsletter to get articles straight into your inbox!
