Jerusalem, 9 November, 2026 (TPS-IL) — Criminal organizations have allegedly turned security companies into vehicles for extorting construction contractors across Israel, charging businesses thousands of shekels a month for protection services that investigators say were never provided. The racket is part of a wider problem estimated to cost the Israeli economy more than NIS 20 billion annually, according to figures presented to the Knesset.
A senior police investigator described to The Press Service of Israel how the companies pressured contractors into hiring security and patrol services linked to criminal organizations, charging NIS 8,000-15,000 ($2,500–$4,700) monthly for protection that was never actually provided. The payments were essentially the price of ensuring that construction sites would not be damaged or set on fire.
The findings emerged from a ten-month covert investigation by the Israel Police’s Coastal District Central Unit and Lahav 433, its elite national crime-fighting unit. On Monday, 500 police officers and Border Police personnel arrested 50 suspects in coordinated raids, primarily in northern Israel, seizing property and funds.
Chief Superintendent Eran Danino, head of Lahav 433’s Extortion Investigation Division, told TPS-IL that investigators identified 15 security companies, some legitimate and others allegedly operating as fronts for extortion.
“We have identified 15 security firms—some legitimate, others illicit—that were used to extort ‘protection money’ from dozens of contractors across the country. The owners now face criminal indictments as well as civil proceedings to shut down these firms, effectively stripping them of the platform they used to carry out the extortion,” Danino said.
He said the investigation had secured an important breakthrough by persuading victims who had previously been reluctant to approach the police to cooperate.
“We are already seeing that these arrests are making waves. In this investigation, we managed to secure cooperation from contractors who have simply had enough of this phenomenon; a large number of them agreed to file formal complaints,” he said.
Among the suspects is a sitting head of a local council in northern Israel, who allegedly operated one of the security companies alongside family members. According to sources familiar with the investigation, some contractors targeted by the extortion knew the council head was behind the company.
Investigators believe the network involved local gangs and powerful organized crime groups, including the Abu Latif, Hariri, Hardon and Sawa’ad organizations.
The suspects, many with previous convictions for violent offenses and extortion, are expected to appear before a court in Haifa. If convicted, they could face five to seven years in prison.
Figures presented to the Knesset Economic Affairs Committee earlier in 2026 estimated the annual economic damage caused by extortion at more than NIS 20 billion ($6.3 billion). An estimated 87% of Israeli contractors pay protection money, while only 25% of those targeted by extortion and threats file police complaints. The remainder fear retaliation against themselves or their businesses.
