Crime Networks Escalate Protection Racket Violence Amid Limited Israeli State Response
In recent weeks, the Japanese restaurant chain Jeponica has become a battleground for organized crime groups in Israel, with grenade attacks and shootings targeting its branches nationwide. Incidents include grenade explosions in Afula and Netanya, and gunfire damaging windows in Herzliya, following similar attacks in Ramat Gan, Kiryat Ono, Ra'anana, and Givatayim. These violent acts appear aimed at pressuring businessman and Beitar Jerusalem owner Barak Abramov, who is reportedly caught in a dispute involving major criminal organizations and the Jeroushi family over sums estimated at 100 million shekels.
The protection racket phenomenon extends beyond Jeponica. A bakery in Shfaram, operating for over 30 years, was forced to close after demands for 3 million shekels in protection payments. Last month, the murder of contractor Marwan Abu Shaheen in northern Israel shocked the real estate community; he had faced repeated threats and attacks for refusing to pay protection money. Roni Brick, president of the Builders Association, condemned the killing as a "red line" crossed and described the protection racket as a strategic threat to the construction sector, especially in peripheral areas.
The economic impact of protection rackets affects all Israeli households, with research by Shomer Hadash and the Rifman Institute estimating an annual "silent tax" of about 2,000 shekels per household due to inflated costs in food, insurance, and housing. Despite government efforts, including a 2023 law criminalizing protection money collection with penalties up to nine years imprisonment and a 30 million shekel pilot compensation fund for victims, enforcement remains weak. Police report a rise from five cases in 2024 to 82 in 2025, with 45 indictments, but lack comprehensive data on overall enforcement.
State initiatives like Government Decision 549, aimed at combating crime in Arab society with a 1.5 billion shekel budget, have only partially been utilized. A recent Knesset audit revealed that 87% of contractors surveyed were asked for protection money, with 47% avoiding tenders involving known criminal bidders. Many victims do not report extortion due to fear or resignation. Legal experts highlight that the protection racket has become a normalized business expense, with many paying voluntarily to avoid conflict.
Lawyer Sarit Meshgav, involved in drafting the 2023 law, explains that the legislation introduced civil asset forfeiture to cut off criminals’ financial resources, hoping to create a "real trauma" for crime bosses. However, she acknowledges that Israel is still far from effectively combating this "most severe criminal threat" to the state. A joint study estimates the economic damage from lack of governance at 23 billion shekels annually, with protection rackets prevalent in the Galilee, Golan Heights, and Negev regions. Even government companies like Mekorot and the Electric Company face extortion demands to prevent sabotage.
The report and ongoing legal challenges underscore that without stronger enforcement, protection rackets will continue to burden Israel’s economy, raise living costs, and undermine public security, as criminal groups effectively control parts of the country.
