Study: Four out of Every 10 Small Businesses in Ecuador Have Been Victims of Extortion

Primicias reported that a recent study revealed that four out of every 10 small businesses in Ecuador faced extortion in 2023.   

Since 2021, extortion of businesses in Ecuador has surged, becoming a major funding source for drug gangs. The Ecuadorian Organized Crime Observatory (OECO) surveyed 458 business owners in various regions, finding that in 2023, three out of every 10 companies were extorted, with 40% of cases going unreported.

Small businesses are frequent targets because they lack security measures. According to the OECO, 38% of small business owners experienced extortion in the last year, often facing multiple demands.

Extortion methods include calls, electronic messages, and visits. Besides extortion, companies also suffer from kidnapping, vandalism, fraud, and theft. Smaller businesses face more extortion, while larger ones experience more kidnappings.

In 2023, there were 21,811 extortion reports, a 2,430% increase from 2019. The rise was notable in 2023, with Guayas, Pichincha, Esmeraldas, and Los Ríos being the most affected provinces.