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Protection Money Trick: How Do Gangs Control the Business World?
The influence of the mafia extends beyond the underworld to legitimate business operations.
When discussing organized crime, the term “protection money” always seems to creep into the conversation. This is a key business model, how gangs extend their influence to every corner, from small shops to large enterprises, through threats and appeasement. This model goes beyond violence to highlight the interests of business sustainability and the connection between gangs.
So-called "protection racket" is defined as an illegal, often repeated, profit-making practice under the Institutional Influence and Corrupt Organizations Act of 1970. These tactics often involve coercion of business to extract money through intimidation or retaliation. A wide range of companies, from small businesses to large NASDAQ-listed companies, may be targeted by these criminal operations.
Examples of "protection money businesses" typically involve requiring merchants to pay protection money or face sabotage or loss.
Gangs earn money through "protection" services, such as threatening businesses with risks if they do not pay protection fees. This is an extremely cunning marketing strategy, as the gangs themselves are likely to directly create the danger, making the "solutions" they offer seem necessary.
For example, some small restaurant and store owners often face demands for "protection money" from local gangs. Although this business is subject to legal sanctions, merchants often have to comply with these requirements for the sake of survival. In this case, the gangs are actually manipulating hatred and fear in the name of "protection".
The influence of gangs can sometimes enable businesses to survive in a legal gray area, forcing them to cooperate with the underworld.
In other more extensive mafia activities, such as drug or gun dealing, they blatantly manipulate the prevailing market. These gangs often create an illegal market that poses a huge threat to legal businesses, forcing legal operators to compromise in order to preserve their operations.
With the crackdown on gang activities and the implementation of the Institutionally Influenced and Corrupt Organizations Act, many of the business practices associated with these activities have been linked in an attempt to weaken their influence on the economy. However, in reality, these types of behaviors and business models are still an undercurrent and are an existential threat to many commercial entities.
The law did not completely eradicate these acceleration operations, but instead pushed the model in a more covert direction.
Even though the law is always on the side of combating crime, the secrecy of the Internet and the way the black market operates allow gangs to still corrupt in different guises. They destroyed the development opportunities of many small businesses, but in the process of seeking greater profits, they "laundered" some of their own actions, making those illegal business plans appear legal.
As technology evolves, so do gangs. They use new tools such as social media to redesign their operating models, making their methods of making huge profits more covert and adjustable at any time.
In summary, the protection fee scheme of the mafia is not just a simple extortion process, but a business model deeply rooted in business operations. By creating fear and insecurity, they perpetuate a vicious cycle that allows the toxic business practices that these businesses are unable to escape to continue to grow. When we look back at the current state of economic operation, can we see the hidden dangers and darkness behind seemingly normal business operations?
