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Kidnap, Ransom & Extortion > Risks & Consequences
What are the risks?
Extortion
Extortion is no longer a problem confined to Africa and South America. It's increasingly prevalent in the UK, Ireland, Continental Europe and other developed markets. Extortion threats of damage to property or bodily injury are rising, whilst e*terrorism through computer viruses is a very real risk for today's businesses.
Features of the problem are:
- In the last 3 years, UK, Irish and Continental European companies have experienced a significant rise in extortion related contamination incidents.
- The catastrophic effect of "prank" viruses such as the "I Love You" virus in May 2000 is expected to lead to the threat of copycat attacks from extortionists.
Kidnap & Hijack
Executives travelling or working overseas are increasingly at risk from kidnap or hijack by local mafia and criminal gangs. In many countries the kidnapping of Westerners has become a business in it's own right and the demands made can be huge. Even in the UK and Ireland, there have been a number of reported kidnaps of employees or their families, often to facilitate a robbery.
Some chilling statistics are:
- Over the last 8 years worldwide reported kidnappings have risen by 70% to a peak of 1,789 in 1999
- The great majority of kidnappings go unreported. In Europe, the unofficial average pay out per kidnapping is estimated to be $650,000 although multi-million ransoms have been paid
- About 10% of kidnap victims are killed. Where professional negotiators are employed the chances of survival are increased very significantly
Emergency Evacuation & Wrongful Detention
In certain parts of the world, the political situation can deteriorate almost overnight. A Company's employees may have to take the first plane out of a country to avoid spiralling instability. Expatriates may need to sit things out for weeks or even months before it's safe to return.
In some countries, businesses may find their employees are victims of wrongful detention or the threat of it, for political or commercial reasons outside of their control
Some examples are:
- A breakdown of law and order in the Solomon Islands led to an evacuation of Western nationals in June 2000
- In Sierra Leone, a resumption of the civil war in May 2000 led to the emergency evacuation of British and Commonwealth citizens.
- In 1998 in the run up to elections in Indonesia, all Westerners were advised to leave the country. It led to a mass exodus as expatriates desperately sought to leave for home or a place of safety.
- During the Gulf War, thousands of westerners were forced to flee Iraq, Kuwait and other neighbouring countries. Those wrongfully detained as "human shields" faced weeks or months of captivity before they were eventually released.
What are the consequences?
The consequences of Extortion, Kidnap or Emergency Evacuation can be financially severe for the business and extremely traumatic for the victim, family and colleagues:
- Extortion attempts usually involve demands for substantial financial payments
- Product contamination or just the threat of it could entail significant costs from the recall of a Company's products, business interruption and loss of reputation
- Payment of hundreds of thousands, even millions, of pounds may need to be paid to secure the release of a kidnap victim
- A kidnapping invariably has financial consequences way beyond what might ordinarily be expected, for example consultants fees, and medical, travel, legal and accommodation expenses
- Death or physical injury may be inflicted on a kidnap victim
- Emergency evacuation of expatriates can involve considerable travel and accommodation costs
- Companies who mishandle extortion or kidnap incidents face the prospect of expensive litigation from victims, families, customers and/or shareholders
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