Extortion and protection money impact Mexican businesses

Extortion and 'cobro de piso' (protection money) are significantly impacting businesses across Mexico, according to reports from Coparmex and local authorities in Tabasco.

In Tabasco, Agustín Gómez Sánchez of the Center for Attention to Reports of Extortion (CADDE) identified protection money and telephone threats as primary extortion methods. These include direct physical visits to businesses and indirect methods such as fraudulent text messages regarding bank cards or prizes. Other identified schemes include 'gota a gota' lending and economic pressure tactics.

Nationwide, Coparmex reported that protection money is the most impactful crime for its members, affecting 18 percent of surveyed businesses. Telephone extortion is the most frequent modality, occurring in four out of every ten cases. The organization also noted that in nearly 20 percent of extortion cases, perpetrators were authorities or individuals impersonating public servants.

Data from Coparmex indicates that approximately 45.6 percent of affiliated companies were victims of crime in the last year. High victimization rates were noted in Michoacán (58.7 percent), Nayarit (56 percent), and Jalisco (56 percent). These security concerns have contributed to a decline in investment sentiment, which fell to 23 percent, the lowest level since 2020.