What is extortion?
Extortion is defined as the act of obtaining something, especially money, through force, threats, or blackmail. Extortion is a crime, i.e illegal use of one's official position or powers to obtain property, funds, or patronage. Penalties for extortion vary by state, but defendants can face up to four years in prison. Learn more in our free legal guide below.
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Mary Martin
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Mary Martin has been a legal writer and editor for over 20 years, responsible for ensuring that content is straightforward, correct, and helpful for the consumer. In addition, she worked on writing monthly newsletter columns for media, lawyers, and consumers. Ms. Martin also has experience with internal staff and HR operations. Mary was employed for almost 30 years by the nationwide legal publi...
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UPDATED: Jul 21, 2023
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UPDATED: Jul 21, 2023
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
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We came up with a simple definition of what is extortion. Extortion is a crime in which one person forces another person to do something against his will, generally to give up money or other property, by the threat of violence, property damage, damage to the person’s reputation, or extreme financial hardship. Extortion involves the victim’s consent to the crime, but that consent is obtained illegally.
Read on to find out what qualifies as extortion and what level of crime is extortion. If you need further legal help, just enter your ZIP code below.
What are examples of extortion?
A classic example of extortion is the “protection” scheme where figures with ties to organized crime demand that shop owners pay for their protection to prevent something bad (such as an assault on the shopkeeper or damage to his or her store or goods) from happening. Among the different types of extortion, many states also consider blackmail, where a victim is forced to pay someone to prevent them from releasing information that could damage their reputation or their business, to be a form of extortion.
Typically, as in those examples, extortion involves intimidation and threats of future violence or harm rather than immediate violence or harm, but extortion can involve immediate violence. For example, it would still be extortion if the offenders in the above example assaulted the shopkeeper to force him to pay them the required protection money instead of threatening to do so in the future. In such cases, extortion becomes very similar to robbery and can likewise lead to a criminal investigation and arrest.
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What are the differences between extortion and robbery?
One distinction between extortion and robbery is that extortion requires that the offender make a verbal or written threat, while robbery does not. Since extortion rarely involves immediate harm, however, the crimes typically can be distinguished because a robber uses immediate threats and force to steal the victim’s property, while in extortion, the victim willingly hands over his money or personal property in order to avoid future damage or violence.
Extortion and blackmail are similar crimes, covered under one law; however, both are different. While extortion is defined as obtaining money, goods, or services by violence, the threat of physical injury, destruction of property, or inappropriate government activity, on the other hand, blackmail is obtaining the above mentioned from an individual through the threat of revealing details of something embarrassing, incriminating, or damaging information.
What are the degrees of extortion?
In the United States, all fifty states have varying laws regarding extortion, with most of the states classifying it as a felony, especially in cases of large scale extortion. Some states charge the crime as a theft offense, while others call it a particular type of extortion such as “attempted extortion,” “extortion in the first degree,” or “extortion in the second degree.” In the few states that split counts of extortion into degrees, extortion in the first degree usually involves threats of bodily harm or physical confinement, while extortion in the second degree applies to threatening to accuse a person of a crime or to expose a secret.
What penalties might you face for extortion?
Penalties for extortion vary widely depending on the jurisdiction and the severity of the extortion threats involved, but sentences generally range between 2 to 4 years. However, many states allow for sentences of 5, 10, or even 20 years. If any instrument of interstate commerce (such as mail, email, phones, computers, or devices) is used for interstate communication in the commission of the crime, federal charges of extortion may be filed. Cyber extortion is a federal crime with a fine or sentence of up to 20 years.
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How is extortion proven?
The specific elements required to prove the crime of extortion differ between states, but the general requirements are that the offender maliciously (not mistakenly) make a verbal, written, or printed threat with the intent to extort something from the victim or to compel the victim to do something against his or her will. Generally, it is irrelevant whether or not the offender actually succeeds in the attempted extortion. Once the threat is made, the offender has committed extortion. In some jurisdictions, and under the federal extortion definition, the victim does not even have to hear or receive the threat in order for the offender to be charged with extortion.
Extortion does not usually require that the offender threaten to commit a criminal act as long as the threat attempts to obtain money, property, or to force the victim to act against their will. For example, a threat to bring criminal charges or file a police report unless money is paid is still extortion, even though the offender may have every right to file a police report. By coupling the legal act with the illegal act of demanding payment to not act, the offender has committed extortion. Note, however, that a threat to file a civil lawsuit typically is not considered extortion even if that lawsuit is frivolous.
The threat also does not have to be directed at the victim. It is still extortion if the threat is directed towards the victim’s family or if it threatens to release information about some third party the victim seeks to protect.
Case Studies: Illustrating Different Aspects of Extortion
Case Study 1: The Protection Racket
In a bustling neighborhood, a group of individuals with ties to organized crime establishes a protection racket targeting local businesses. They approach shop owners, demanding a monthly payment in exchange for ensuring the safety of their establishments and themselves.
The extortionists threaten severe consequences, such as physical harm, property damage, or even the complete shutdown of the business, if the payments are not made promptly.
Case Study 2: Blackmail and Reputation Protection
A successful business executive finds themselves at the mercy of a blackmailer who has obtained sensitive information that could tarnish their reputation and jeopardize their career. The blackmailer threatens to release the information to the public unless a substantial sum of money is paid.
Fearing the potential damage to their personal and professional life, the executive reluctantly agrees to the demands, succumbing to the extortion.
Case Study 3: Cyber Extortion Through Ransomware
A small manufacturing company falls victim to a sophisticated ransomware attack. The attackers infiltrate the company’s computer systems, encrypt critical files, and demand a hefty ransom in exchange for the decryption keys.
Aware of the devastating consequences of losing access to crucial data, including client information and intellectual property, the company is left with no choice but to pay the ransom to regain control of their operations.
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Mary Martin
Published Legal Expert
Mary Martin has been a legal writer and editor for over 20 years, responsible for ensuring that content is straightforward, correct, and helpful for the consumer. In addition, she worked on writing monthly newsletter columns for media, lawyers, and consumers. Ms. Martin also has experience with internal staff and HR operations. Mary was employed for almost 30 years by the nationwide legal publi...
Published Legal Expert
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.