Extortion threatens businesses in Mexico with $1.3 billion loss

In Mexico, the issue of extortion has become increasingly severe, causing numerous businesses to shut down due to financial pressures and threats from criminals. One particular men's clothing store in Mexico City's historic center faced escalating demands after a threatening phone call in 2019. The store owner, who has chosen to remain anonymous for fear of retaliation, was coerced into paying 10,000 pesos weekly. Despite attempts to manage his store remotely and not personally visit due to threats and robberies, the owner found little recourse from authorities, as around 97% of extortion cases go unreported according to Mexico’s National Institute for Statistics and Geography. By the first five months of 2025, reported extortion cases in Mexico City had nearly doubled to 498 from the previous year. The growing trend of extortion is linked to organized crime, particularly drug cartels, which have drawn lower-level criminals into their operations, exploiting fear to run their own schemes. As a result, the rampant extortion is damaging not only livelihoods but also the economy, with the Mexican Employers’ Association, Coparmex, estimating the cost to businesses at $1.3 billion in 2023, a staggering figure that highlights the extent of this crisis.