Extortion Crisis Chokes Mexico City Businesses

Small business owners face rising threats and closures amidst escalating crime.

In Mexico City, a surge in extortion is crippling businesses, with many owners forced to shutter their doors after years of relentless threats. Organized crime groups are largely responsible, and authorities struggle to keep pace.

Demands and Threats

It began with a phone call to a men’s clothing store in Mexico City’s historic center. The caller demanded weekly payments of 10,000 pesos ($500). When the owner refused, the voice on the other end threatened “Well, prepare to face the consequences.”

After years of escalating intimidation, armed robberies, and visits from thugs, the owner, fearing for their safety, made the difficult decision to close the store that his grandfather started in 1936.

Mounting Losses and Rising Cases

According to the Mexican Employers’ Association, Coparmex, extortion cost businesses around $1.3 billion in 2023. Despite declines in other major crimes, extortion continues to climb, with a 10% increase nationally in the first quarter compared to last year.

In Mexico City, the number of reported cases nearly doubled in the first five months of 2025, reaching 498, according to federal crime data. This marks the highest total in the past six years.

A Systemic Problem

After the initial extortion attempt in 2019, the store owner stopped answering the phone for months. When the demands started again in 2021, he avoided the shop and managed it remotely, following advice from his attorneys.

During one robbery, employees were held at gunpoint, tied up, and locked in a bathroom while the criminals stole money. After two years of threats, the owner reported the crime to the authorities.

The investigation stalled due to lack of evidence. The owner noted that the investigators demanded proof that he couldn’t provide. The threats were only verbal.

Underreporting and Fear

Most extortion cases go unreported. Mexico’s National Institute for Statistics and Geography estimates that around 97% of extortions go unreported.

This reluctance stems from fear and a belief that authorities can’t or won’t help. Mexico City Police Chief Pablo Vázquez Camacho acknowledged that police are receiving more reports but recognize that many more cases remain hidden. “We can’t solve something that we’re not even seeing or that isn’t being reported,” said Vázquez.

Vicente Gutiérrez Camposeco, president of the Mexico City Chamber of Commerce, stated that the problem “has become entrenched” in Mexico, especially in the capital.

Daniel Bernardi, whose family has run a popsicle shop in the historic center for 85 years, accepted the situation, saying, “There isn’t much to do. You pay when you have to pay.”

Government Response

To combat the rising crisis, the Mexico City prosecutor’s office created a special prosecutor’s office to investigate and prosecute extortion cases.

In July, President Claudia Sheinbaum announced plans for legislation to grant the government greater powers against extortionists. A national strategy was also unveiled this week, including a hotline for anonymous reporting, immediate cancellation of phone numbers linked to extortion, local anti-extortion units, and the involvement of Mexico’s Financial Intelligence Unit to freeze related bank accounts.

Cartel Influence

The expansion of extortion is fueled by the large profits it generates for organized crime, drawing in powerful drug cartels like the Sinaloa and Jalisco New Generation cartels. Security analyst David Saucedo explained that these cartels have made extortion “one of the divisions of their criminal portfolios.”

Additionally, small-time criminals exploit the fear created by the cartels by running their own extortion schemes, posing as members of larger groups.

The clothing store owner, unsure of who was extorting him, felt vulnerable without help from authorities. The threats had intensified, indicating they would kill him if he didn’t comply.

In December 2023, the owner made the difficult decision to close the store. The closure brought sadness and anger, knowing that fear had robbed him of his livelihood. “When I closed I felt very sad. And then it made me so mad to think that I could still go on, but because of fear I couldn’t,” he said. “You work your whole life for them to destroy it.”