The alarming trend of extortion is wreaking havoc on small businesses in Mexico, prompting many owners to close their shops due to unrelenting threats and violence. One case from a men’s clothing store owner in Mexico City illustrates this epidemic. After receiving a threatening phone call demanding 10,000 pesos ($500) weekly for "protection," the owner refused to comply, aware that the demand constituted half of his store’s daily income. This defiance led to a series of escalating threats, armed robberies, and intimidation tactics that ultimately forced him to shutter his family-owned store, established in 1936.
Extortion in Mexico is closely linked to powerful organized crime groups. While larger corporations might absorb the cost of extortion as part of their operations, many small businesses are struggling to survive. According to the Mexican Employers' Association, Coparmex, extortion cost businesses approximately $1.3 billion in 2023 alone. Although other major crimes have seen a decrease, extortion rates continue to rise, with a 10% increase nationally in the first quarter of 2023 compared to the previous year.
In Mexico City, the situation is particularly dire. Reports indicate that the number of extortion cases nearly doubled in the first five months of 2025, reaching 498 cases compared to 249 during the same period in 2024. This spike represents the highest recorded total in the past six years, according to federal crime statistics.
After initially receiving the phone call in 2019, the store owner sought to shield his business and employees by avoiding communication with potential extortionists. Unfortunately, his efforts were in vain; the perpetrators became more aggressive, visiting the store and demanding payment. Following multiple robberies where employees were held at gunpoint, the owner finally reported the extortion to the authorities, but the investigation failed to yield results due to a lack of tangible evidence.
The reality of extortion in Mexico is exacerbated by widespread underreporting. The National Institute for Statistics and Geography has estimated that a staggering 97% of extortion cases went unreported in 2023. This disparity stems from a combination of fear and distrust towards law enforcement, leaving many business owners feeling isolated and vulnerable. Mexico City's police chief acknowledged that while more reports are being filed, a significant number of cases remain unheard.
Vicente Gutiérrez Camposeco, president of the Mexico City Chamber of Commerce, characterized extortion as an entrenched issue within the capital. Many business owners, such as Daniel Bernardi, who has operated a popsicle shop for 85 years, have resigned themselves to the reality of paying extortion requests. Amidst this troubling climate, the Mexico City prosecutor’s office has announced the creation of a specialized unit to address extortion cases.
In response to this growing crisis, President Claudia Sheinbaum proposed new legislation aimed at providing the government with enhanced powers to combat extortionists. Recent initiatives have included the establishment of a hotline for anonymous reporting of extortion, authority to cancel phone numbers involved in extortion calls, and the formation of local anti-extortion units to investigate these crimes.
Extortion's rapid expansion is primarily driven by organized crime groups such as the Sinaloa and Jalisco New Generation cartels, who perceive extortion as a lucrative segment of their criminal operations. Small-time criminals capitalize on the fear instilled by these larger organizations to run their own extortion schemes, falsely claiming connections with powerful crime syndicates.
The clothing store owner, unaware of the identity of his extorters but feeling increasingly cornered, recounted a nearby restaurant that had to shut down after the owner was killed for not complying with extortion demands. Faced with intensified threats—including threats to his life—the store owner ultimately decided to close his family business in December 2023. Watching his shop's belongings disappear marked a painful end to a venture built over generations, leaving him to grapple with the frustration that fear had overtaken his ability to continue his life’s work.
