A protection racket is a type of racket and a scheme of

organized crime Organized crime (or organised crime) is a category of transnational, national, or local groupings of highly centralized enterprises run by criminals to engage in illegal activity, most commonly for profit. While organized crime is generally th ...

perpetrated by a potentially hazardous organized crime group that generally guarantees protection outside the sanction of the law to another entity or individual from

violence Violence is the use of physical force so as to injure, abuse, damage, or destroy. Other definitions are also used, such as the World Health Organization's definition of violence as "the intentional use of physical force or power, threatened ...

robbery Robbery is the crime of taking or attempting to take anything of value by force, threat of force, or by use of fear. According to common law, robbery is defined as taking the property of another, with the intent to permanently deprive the perso ...

ransack Looting is the act of stealing, or the taking of goods by force, typically in the midst of a military, political, or other social crisis, such as war, natural disasters (where law and civil enforcement are temporarily ineffective), or rioting. ...

ing,

arson Arson is the crime of willfully and deliberately setting fire to or charring property. Although the act of arson typically involves buildings, the term can also refer to the intentional burning of other things, such as motor vehicles, wate ...

vandalism Vandalism is the action involving deliberate destruction of or damage to public or private property. The term includes property damage, such as graffiti and defacement directed towards any property without permission of the owner. The ter ...

, and other such

threat A threat is a communication of intent to inflict harm or loss on another person. Intimidation is a tactic used between conflicting parties to make the other timid or psychologically insecure for coercion or control. The act of intimidation for co ...

s, in exchange for payments. The perpetrators of the racket may protect vulnerable targets from other dangerous individuals and groups or may simply offer to refrain from themselves carrying out attacks on the targets, and usually both of these forms of protection are implied in the racket. Due to the frequent implication that the racketeers may contribute to harming the target upon failure to pay, the protection racket is generally considered a form of

extortion Extortion is the practice of obtaining benefit through coercion. In most jurisdictions it is likely to constitute a criminal offence; the bulk of this article deals with such cases. Robbery is the simplest and most common form of extortion, ...

. In some instances, the main potential threat to the target may be caused by the same group that offers to solve it in return for payment, but that fact may sometimes be concealed in order to ensure continual patronage and

funding Funding is the act of providing resources to finance a need, program, or project. While this is usually in the form of money, it can also take the form of effort or time from an organization or company. Generally, this word is used when a firm use ...

of the

crime syndicate Organized crime (or organised crime) is a category of transnational, national, or local groupings of highly centralized enterprises run by criminals to engage in illegal activity, most commonly for profit. While organized crime is generally th ...

by the coerced party. The protection racket sells

physical security Physical security describes security measures that are designed to deny unauthorized access to facilities, equipment and resources and to protect personnel and property from damage or harm (such as espionage, theft, or terrorist attacks). Phy ...

. Through the credible threat of violence, the racketeers deter both people in their own criminal organization, and third-party criminals from swindling, robbing, injuring, sabotaging, or otherwise harming their clients. The racket often occurs in situations and places where criminal threats to certain businesses, entities, or individuals are not effectively prevented or addressed by the prevailing system of law and order or

governance Governance is the process of interactions through the laws, norms, power or language of an organized society over a social system ( family, tribe, formal or informal organization, a territory or across territories). It is done by the g ...

, or in cases of inadequate protection by the law for certain ethnic or socioeconomic groups. Protection rackets tend to form in markets in which the

law enforcement Law enforcement is the activity of some members of government who act in an organized manner to enforce the law by discovering, deterring, rehabilitating, or punishing people who violate the rules and norms governing that society. The term ...

cannot be counted on to provide legal protection, because of incompetence (as in weak, corrupt, or failed states), illegality (when the targeted entity is involved in

black market A black market, underground economy, or shadow economy is a clandestine market or series of transactions that has some aspect of illegality or is characterized by noncompliance with an institutional set of rules. If the rule defines the ...

s), and/or because forms of government distrust exist among the entities involved. Protection rackets are often indistinguishable in practice from

rackets, and generally distinguishable from social service and private security by the degree of implied threat; the racketeers themselves may threaten and attack businesses, technological infrastructure, and citizens if the payments are not made. A distinction is possible between a "pure" extortion protection racket, in which the racketeers might agree only not to attack a business or entity, and a broader protection racket offering some real private security in addition to such extortion. In either case, the racketeers generally agree to defend a business or individual from ''any'' attack by either themselves or third parties (other criminal gangs). In reality, the distinction between the two types of protection rackets is dubious, because in either case extortion racketeers may have to defend their clients against rival gangs to maintain their profits. By corollary, criminal gangs may have to maintain control of territories (turfs), as local businesses may collapse if forced to pay for protection from too many rackets, which then hurts all parties involved. Certain scholars, such as Diego Gambetta, classify criminal organizations engaged in protection racketeering as " mafia", as the racket is popular with both the

Sicilian Mafia The Sicilian Mafia, also simply known as the Mafia and frequently referred to as Cosa nostra (, ; "our thing") by its members, is an Italian Mafia-terrorist-type organized crime syndicate and criminal society originating in the region of Sicily ...

and

Italian-American Mafia The American Mafia, commonly referred to in North America as the Italian American Mafia, the Mafia, or the Mob, is a highly organized Italian American criminal society and organized crime group. The organization is often referred to by its mem ...

Overview

A protection racket is an operation where racketeers provide protection to persons and properties, settle disputes and enforce contracts in markets where the police and judicial system cannot be relied upon. Diego Gambetta's ''The Sicilian Mafia'' (1996) and Federico Varese's ''The Russian Mafia'' (2001) define the mafia as a type of

group that specializes in the provision of private protection. Protection racketeers or mafia groups operate mostly in the

, providing buyers and sellers the security they need for smooth transactions; but empirical data collected by Gambetta and Varese suggests that mafia groups are able to offer private protection to corporations and individuals in legal markets when the state fails to offer sufficient and efficient protection to the people in need. Two elements distinguish racketeers from legal

security firm Security is protection from, or resilience against, potential harm (or other unwanted coercive change) caused by others, by restraining the freedom of others to act. Beneficiaries (technically referents) of security may be of persons and social g ...

s. The first element is their willingness to deploy violent forms of retribution (going as far as

murder Murder is the unlawful killing of another human without justification or valid excuse, especially the unlawful killing of another human with malice aforethought. ("The killing of another person without justification or excuse, especially the ...

) that fall outside the limits the law normally extends to civilian security firms. The other element is that racketeers are willing to involve themselves in illegal markets. Recent studies show that mafia groups or gangs are not the only form of protection racket or extra-legal protector, and another important form of protection racket is corrupt networks consisting of public officials, especially those from

criminal justice Criminal justice is the delivery of justice to those who have been accused of committing crimes. The criminal justice system is a series of government agencies and institutions. Goals include the rehabilitation of offenders, preventing other ...

agencies. For example, Wang's ''

The Chinese Mafia A triad ( zh , t=三合會 , s=三合会 , cy=sāam hahp wúi , j=saam1 hap6 wui6‑2 , hp=sān hé huì , first=t,j ) is a Chinese transnational organized crime syndicate based in Greater China and has outposts in various countries with signifi ...

'' (2017) examines protection rackets in China and suggests two types of extra-legal protectors, namely the Black Mafia (local gangs) and the Red Mafia (networks of corrupt government officials). Wang's narrative suggests that local gangs are quasi-law enforcers in both legal and illegal markets, and corrupt public officials are extra-legal protectors, safeguarding local gangs, protecting illegal entrepreneurs in the criminal underworld, offering protection to businesspeople, and selling public appointments to buyers.

Territorial monopolies

A protection racketeer cannot tolerate competition within his sphere of influence from another racketeer. If a dispute erupted between two clients (e.g. businessmen competing for a construction contract) who are protected by rival racketeers, the two racketeers would have to fight each other to win the dispute for their respective clients. The outcomes of such fights can be unpredictable, and neither racketeer would be able to guarantee a victory for his client. This would make their protection unreliable and of little value; their clients would likely dismiss them and settle the dispute by other means. Therefore, racketeers negotiate territories in which they can monopolize the use of violence in settling disputes. These territories may be geographical, or they may be a certain type of business or form of transaction.

Providing genuine protection

Sometimes racketeers will warn other criminals that the client is under their protection and that they will punish anyone who harms the client. Services that the racketeers may offer may include the recovery of stolen property or punishing vandals. The racketeers may even advance the interests of the client by forcing out (or otherwise hindering or intimidating) unprotected competitors. Protection from theft and vandalism is one service the racketeer may offer. For instance, in Sicily, mafiosi know all the thieves and fences in their territory, and can track down stolen goods and punish thieves who attack their clients. Protection racketeers establish what they hope will be indefinitely long bonds with their clients. This allows the racketeers to publicly declare a client to be under their protection. Thus, thieves and other predators will have little confusion as to who is and is not protected. Protection racketeers are not necessarily criminals. In ''

A Short History of Progress A, or a, is the first letter and the first vowel of the Latin alphabet, used in the modern English alphabet, the alphabets of other western European languages and others worldwide. Its name in English is ''a'' (pronounced ), plural ''aes'' ...

'',

Ronald Wright Ronald Wright (born 1948, London, England) is a Canadian author who has written books of travel, history and fiction. His nonfiction includes the bestseller '' Stolen Continents'', winner of the Gordon Montador Award and chosen as a book of th ...

notes on p. 49, "The warrior caste, supposedly society's protectors, often become protection racketeers. In times of war or crisis, power is easily stolen from the many by the few on a promise of security. The more elusive or imaginary the foe, the better for manufacturing consent."

Examples

Danegeld Danegeld (; "Danish tax", literally "Dane yield" or tribute) was a tax raised to pay tribute or protection money to the Viking raiders to save a land from being ravaged. It was called the ''geld'' or ''gafol'' in eleventh-century sources. It ...

, was a protection tax paid by

Christendom Christendom historically refers to the Christian states, Christian-majority countries and the countries in which Christianity dominates, prevails,SeMerriam-Webster.com : dictionary, "Christendom"/ref> or is culturally or historically intertwin ...

to stop Viking raids. *During the late medieval and early modern era in the Scottish Marches, local farmers would often need to make payments to the

Border Reivers Border reivers were raiders along the Anglo-Scottish border from the late 13th century to the beginning of the 17th century. They included both Scottish and English people, and they raided the entire border country without regard to their v ...

as a form of protection money to ensure they were not attacked. These agreements were called "Black mal", where "mal" was an

Old Norse Old Norse, Old Nordic, or Old Scandinavian, is a stage of development of North Germanic dialects before their final divergence into separate Nordic languages. Old Norse was spoken by inhabitants of Scandinavia and their overseas settlement ...

word meaning agreement. The word

blackmail Blackmail is an act of coercion using the threat of revealing or publicizing either substantially true or false information about a person or people unless certain demands are met. It is often damaging information, and it may be revealed to fa ...

entered the English language in 1530 as a result, but the word's meaning has changed since. *In Melbourne, Australia, Alphonse Gangitano ran a protection racket along the famous Lygon Street during the 1990s. *In

Sicily (man) it, Siciliana (woman) , population_note = , population_blank1_title = , population_blank1 = , demographics_type1 = Ethnicity , demographics1_footnotes = , demographi ...

, Italy, officials say that 80% of businesses in the city of

Palermo Palermo ( , ; scn, Palermu , locally also or ) is a city in southern Italy, the capital of both the autonomous region of Sicily and the Metropolitan City of Palermo, the city's surrounding metropolitan province. The city is noted for its ...

pay '' pizzo'', or protection money, to the

. *In

Ciudad Juárez Ciudad Juárez ( ; ''Juarez City''. ) is the most populous city in the Mexican state of Chihuahua. It is commonly referred to as Juárez and was known as El Paso del Norte (''The Pass of the North'') until 1888. Juárez is the seat of the Ju� ...

, Mexico, when the Mexican Drug War escalated in 2008, criminal groups like the Juárez Cartel saw their financial backbone threatened and began asking for protection money from businesses ranging from convenience stores to clubs and restaurants with the threat of burning down the business, kidnapping the owners or killing everyone inside with assault rifles. *In the early history of post-Soviet Russia, law enforcement was too underfunded and poorly trained to protect businesses and enforce contracts. Most businesses had to join a protection racket (known as a ''krysha'', the Russian word for "roof") run by local gangsters. *In the

United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the continental mainland. It comprises England, Scotland, Wales and ...

in the 1950s and 60s the

Kray twins Ronald Kray (24 October 193317 March 1995) and Reginald Kray (24 October 19331 October 2000) were identical twin brothers, gangsters and convicted criminals. They were the foremost perpetrators of organised crime in the East End of London, Engl ...

ran protection rackets in the

East End of London The East End of London, often referred to within the London area simply as the East End, is the historic core of wider East London, east of the Roman and medieval walls of the City of London and north of the River Thames. It does not have univ ...

.Metropolitan Police Service
The Kray twins - jailed in 1969
*

Chauth Chauth (from Sanskrit, meaning ''one fourth'') was a regular tax or tribute imposed from the early 18th century by the Maratha Empire in the Indian subcontinent. It was an annual tax nominally levied at 25% on revenue or produce, hence the name, ...

, demanded by

Sambhaji Sambhaji Bhosale (14 May 1657 – 11 March 1689) was the second Chhatrapati of the Maratha Empire, ruling from 1681 to 1689. He was the eldest son of Shivaji, the founder of the Maratha Empire. Sambhaji's rule was largely shaped by the ongoing ...

and Peshva Brahmins during Mahratta Invasions of Bengal and Mahratta Sackings of Goa and Bombay-Bassein.

Government protection rackets

Government officials may demand

bribes Bribery is the offering, giving, receiving, or soliciting of any item of value to influence the actions of an official, or other person, in charge of a public or legal duty. With regard to governmental operations, essentially, bribery is "Corru ...

to look the other way or extort something of value from citizens or corporations in the form of a kickback. It need not always be money. A lucrative job after leaving office may have been in exchange for protection offered when in office. Payment may also show up indirectly in the form of a campaign contribution. Stopping governments agencies as a whole, and buying protection in the government is called

regulatory capture In politics, regulatory capture (also agency capture and client politics) is a form of corruption of authority that occurs when a political entity, policymaker, or regulator is co-opted to serve the commercial, ideological, or political interests ...

References