A protection racket is a racketeering scheme, usually perpetrated by a criminal organization, that coerces payments on a regular basis from an individual or group in exchange for agreeing to not harm them (or for supposedly "protecting" them). The threat of harm may be indirectly communicated or implied, and it may include violence, robbery, ransacking, arson, vandalism, etc. The payments are called "protection money" or a "protection fee". An organized crime group determines an affordable fee by negotiating with each of its payers to help ensure a consistent and punctual payment. Protection rackets can vary in terms of their levels of sophistication or organization.
The perpetrators of a protection racket may protect vulnerable targets from other dangerous individuals and groups or may simply offer to refrain from themselves carrying out attacks on the targets, and usually both of these forms of protection are implied in the racket. Due to the frequent implication that the racketeers may contribute to harming the target upon failure to pay, the protection racket is generally considered a form of extortion. In some instances, the main potential threat to the target may be caused by the same group that offers to solve it in return for payment, but that fact may sometimes be concealed in order to ensure continual patronage and funding of the crime syndicate by the coerced party. In other cases, depending on the perpetrators' level of influence with authorities and the legality of the business being protected, protection rackets may also offer protection against law enforcement and police involvement, especially if the perpetrators bribe or threaten local law enforcement.