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FBI issues warning for cyber criminals taking advantage of COVID-19 – News 5 Cleveland

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CLEVELAND — The FBI has issued a warning to cyber criminals cashing in on the coronavirus pandemic. Some criminals, it turns out, are putting a new twist on old scams.

“There has definitely been an uptick in COVID scams,” said U.S. Attorney of the Northern District of Ohio Justin Herdman.

Cyber criminals are targeting Americans concerned about their health, families and jobs.

Things you should look out for:

  • The FBI is warning Americans to be on the lookout for anyone sending email about selling products that claim to prevent, treat, diagnose or cure COVID-19, so be alert to counterfeit sanitizing products and PPE items such as masks, gowns or gloves
  • There are also phishing emails that ask you to verify your personal information in order to get your stimulus check from the government

“The government is not going to email you and ask for your personal information. The government is not going to call you and ask for your personal information. The government already has your personal information from your tax returns and that’s where the stimulus checks will come from,” said Special Agent Vicki Anderson of the Cleveland FBI.

So far, the FBI has received more than 4,000 calls across the globe and more than 650 in the United States, including some in northern Ohio.

People are falling victim to email scams by clicking on links attached to emails.

Never click on an unfamiliar attachment or link, always type in the web address yourself, Anderson said.

There is now a COVID-19 fraud coordinator at the U.S. Attorney’s Office for a couple of reasons, according to Herdman.

“A, we want to identify the bad people. B, we are in the position to prosecute right away and minimize the victims,” he said.

The National Center for Disaster Fraud typically deals with fraud surrounding tornadoes or hurricanes. But, it is now up and running in connection to COVID-19, according to Herdman.

Fraud complaints will be taken and funneled to law enforcement and the U.S. Attorney Offices, he said.

There are a couple of ways to alert law enforcement if you are a fraud victim. Contact the FBI’s Internet Crime Complaint Center or by emailing The National Center for Disaster Fraud at disaster@leo.gov or by calling 866-720-5721.

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Europol: Criminals exploit virus crisis as fresh opportunity – Minneapolis Star Tribune

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PARIS — Criminals are preying on a fearful public and disrupting the provision of medical care during the coronavirus pandemic by selling counterfeit products, impersonating health workers and hacking computers as many citizens do their jobs online at home, European law enforcement agency Europol said Friday.

In one instance, a cyberattack on a major hospital in the Czech Republic where COVID-19 tests are carried out forced the cancellation of planned surgeries, Europol said in a new report.

Organized crime groups, well-known for identifying new opportunities, have found new pathways to scam people made vulnerable by fears of the virus, which, like criminals, know no borders, according to the report.

“Criminals have quickly seized the opportunities to exploit the crisis by adapting their modes of operation or developing new criminal activities,” Europol Executive Director, Catherine de Bolle said in a statement. She added that organized crime groups’ “capacity to exploit this crisis means we need to be constantly vigilant and prepared.”

Europol’s report lists four main avenues for illicit activity: cybercrime, fraud, counterfeit and substandard goods, and organized property crime. Criminals manufacture and sell high-demand products like masks or medicine, impersonate medical workers to get into homes or businesses, and break into a gold mine of information with so many European citizens now doing their jobs online at home.

Coronavirus-related criminal activity is not limited to Europe. A March 3-10 operation in 90 countries, overseen by international police agency Interpol, dug out suspects seeking fast cash, notably with the sale of counterfeit face masks and medicines.

Interpol said that it disrupted the work of 37 organized crime groups, and seized 34,000 fake and substandard masks, and more than $14 million in potentially dangerous pharmaceuticals. The “corona spray,” “corona packages” and medicines are but “the tip of the iceberg regarding this new trend in counterfeiting,” Interpol said.

COVID-19, the disease caused by the new virus, causes mild or moderate symptoms for most people, such as fever or coughing for two to three weeks. But it can cause more serious illness and death for others, especially for older adults and people with existing health problems.

Europol noted the transfer of 6.6 million euros by a European company to another in Singapore to buy face masks and alcohol gels, widely used now for cleaning hands to protect from the coronavirus.

“The goods were never received,” the report said. It did not identify either company.

Criminals also lurk at the doorways of private homes as hundreds of millions of people across Europe are confined under government orders to slow the spread of the virus. The fraud schemes used to get inside private residences to steal vary but often involve someone impersonating medical officials, conducting a “corona test,” providing hygiene products or informative material, Europol said.

In one European country, an individual was notified by phone of a relative hospitalized with the virus and then received a middle-of-the-night visit from individuals in protective gear posing as doctors who actually swabbed the victim’s mouth.

European officials have warned the public to be wary of potential scam artists during the unprecedented and vulnerable times.

European Commission President Ursula von der Leyen noted recently that increased time online, for work or to while away days and weeks of confinement, means that criminals “exploit our concerns about the coronavirus.”

“Our fear becomes their business opportunity,” she said.

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Public warned as scam artists, hackers tap into pandemic fears – NWAOnline

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PARIS — Criminals are preying on a fearful public and disrupting the provision of medical care during the coronavirus pandemic by selling counterfeit products, impersonating health workers and hacking computers as many people do their jobs online at home, European law enforcement agency Europol said Friday.

In one instance, a cyberattack on a major hospital in the Czech Republic where covid-19 tests are carried out forced the cancellation of planned surgeries, Europol said in a new report.

Organized-crime groups, well-known for identifying new opportunities, have found new pathways to scam people made vulnerable by fears of the virus, which, like criminals, know no borders, according to the report.

“Criminals have quickly seized the opportunities to exploit the crisis by adapting their modes of operation or developing new criminal activities,” Europol Executive Director Catherine de Bolle said in a statement. She added that organized-crime groups’ “capacity to exploit this crisis means we need to be constantly vigilant and prepared.”

[CORONAVIRUS: Click here for our complete coverage » arkansasonline.com/coronavirus]

Europol’s report lists four main avenues for illicit activity: cybercrime, fraud, counterfeit and substandard goods, and organized property crime. Criminals manufacture and sell high-demand products like masks or medicine, impersonate medical workers to get into homes or businesses, and break into a gold mine of information with so many European citizens now doing their jobs online at home.

Coronavirus-related criminal activity is not limited to Europe. A March 3-10 operation in 90 countries, overseen by international police agency Interpol, dug out criminals seeking fast cash, notably with the sale of counterfeit face masks and medicines.

Interpol said that it disrupted the work of 37 organized-crime groups, and seized 34,000 fake and substandard masks, and more than $14 million in potentially dangerous pharmaceuticals. The “corona spray,” “corona packages” and medicines are but “the tip of the iceberg regarding this new trend in counterfeiting,” Interpol said.

Covid-19, the disease caused by the new virus, causes mild or moderate symptoms for most people, such as fever or coughing for two to three weeks. But it can cause more serious illness and death for others, especially for older adults and people with existing health problems.

Europol noted the transfer of $7.3 million by a European company to another in Singapore to buy face masks and alcohol gels, widely used now for cleaning hands to protect from the coronavirus.

“The goods were never received,” the report said. It did not identify either company.

Criminals also lurk at the doorways of private homes as hundreds of millions of people across Europe are confined under government orders to slow the spread of the virus. The fraud schemes used to get inside private residences to steal vary but often involve someone impersonating medical officials, conducting a “corona test,” providing hygiene products or informative material, Europol said.

In one European country, an individual was notified by phone of a relative hospitalized with the virus and then received a middle-of-the-night visit from individuals in protective gear posing as doctors who actually swabbed the victim’s mouth.

European officials have warned the public to be wary of potential scam artists during the unprecedented and vulnerable times.

European Commission President Ursula von der Leyen noted recently that increased time online, for work or to while away days and weeks of confinement, means that criminals “exploit our concerns about the coronavirus.”

“Our fear becomes their business opportunity,” she said.

A Section on 03/28/2020

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Europol: Criminals exploit virus crisis as fresh opportunity – WKMG News 6 & ClickOrlando

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FILE – In this photo taken on March 21, 2020 police officers check on motorists in Baisieux, on the Belgian-French boarder, northern France. Criminals have spotted a new business opportunity with the coronavirus pandemic and are now plundering the needy and the fearful and even disrupting the medical sector, online and off, with fraud, counterfeit products and cybercrime, a report issued Friday by the European law enforcement agency Europol says. The new coronavirus causes mild or moderate symptoms for most people, but for some, especially older adults and people with existing health problems, it can cause more severe illness or death. (AP Photo/Michel Spingler, File)

PARIS – Criminals are preying on a fearful public and disrupting the provision of medical care during the coronavirus pandemic by selling counterfeit products, impersonating health workers and hacking computers as many citizens do their jobs online at home, European law enforcement agency Europol said Friday.

In one instance, a cyberattack on a major hospital in the Czech Republic where COVID-19 tests are carried out forced the cancellation of planned surgeries, Europol said in a new report.

Organized crime groups, well-known for identifying new opportunities, have found new pathways to scam people made vulnerable by fears of the virus, which, like criminals, know no borders, according to the report.

“Criminals have quickly seized the opportunities to exploit the crisis by adapting their modes of operation or developing new criminal activities,” Europol Executive Director, Catherine de Bolle said in a statement. She added that organized crime groups’ “capacity to exploit this crisis means we need to be constantly vigilant and prepared.”

Europol’s report lists four main avenues for illicit activity: cybercrime, fraud, counterfeit and substandard goods, and organized property crime. Criminals manufacture and sell high-demand products like masks or medicine, impersonate medical workers to get into homes or businesses, and break into a gold mine of information with so many European citizens now doing their jobs online at home.

Coronavirus-related criminal activity is not limited to Europe. A March 3-10 operation in 90 countries, overseen by international police agency Interpol, dug out suspects seeking fast cash, notably with the sale of counterfeit face masks and medicines.

Interpol said that it disrupted the work of 37 organized crime groups, and seized 34,000 fake and substandard masks, and more than $14 million in potentially dangerous pharmaceuticals. The “corona spray,” “corona packages” and medicines are but “the tip of the iceberg regarding this new trend in counterfeiting,” Interpol said.

COVID-19, the disease caused by the new virus, causes mild or moderate symptoms for most people, such as fever or coughing for two to three weeks. But it can cause more serious illness and death for others, especially for older adults and people with existing health problems.

Europol noted the transfer of 6.6 million euros by a European company to another in Singapore to buy face masks and alcohol gels, widely used now for cleaning hands to protect from the coronavirus.

“The goods were never received,” the report said. It did not identify either company.

Criminals also lurk at the doorways of private homes as hundreds of millions of people across Europe are confined under government orders to slow the spread of the virus. The fraud schemes used to get inside private residences to steal vary but often involve someone impersonating medical officials, conducting a “corona test,” providing hygiene products or informative material, Europol said.

In one European country, an individual was notified by phone of a relative hospitalized with the virus and then received a middle-of-the-night visit from individuals in protective gear posing as doctors who actually swabbed the victim’s mouth.

European officials have warned the public to be wary of potential scam artists during the unprecedented and vulnerable times.

European Commission President Ursula von der Leyen noted recently that increased time online, for work or to while away days and weeks of confinement, means that criminals “exploit our concerns about the coronavirus.”

“Our fear becomes their business opportunity,” she said.

Copyright 2020 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

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Coronavirus Job Listings and Money Laundering Schemes – Security Boulevard

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Criminals never cease to amaze us. If the recent outbreak wasn’t enough to fill your plate, picture yourself tricked into becoming a money mule for scammers feeding off the Covid-19 scare.

Many people have had their lives turned upside down and were not able to resort to remote work to keep their jobs. Those now seeking a work-from-home job may find themselves an accessory in a money-laundering scheme.

Are you feeling charitable?

Several fraudulent websites have blossomed overnight following the Coronavirus outbreak. However, this time, the crooks are not offering you any hand sanitizer or the latest updates on the crisis. Scammers posing as a legitimate charity foundation are hiring online customer service representatives that are required to do some groundwork in an initial stage. This bogus organization was using the information of a legitimate global crowdfunding community that helped nonprofit organizations from all over the globe.

The Vasty Health Care Foundation, whose domain is no longer active, was hiring individuals to help out with ‘donations’ and investigate local pharmacies allegedly violating pricing policies for medical products. After the detective work is done, the new recruits are told to file a report and keep any receipts to charge travel expenses. Sounds pretty good right?

Here’s the catch. After completing a couple of these pointless tasks, you’re asked to help wire a ‘donation’ from a contributor who wants to support the fight against the Coronavirus. You’ll receive a transfer in your personal bank account from the ‘employer’ and you’re asked to withdraw the money at an ATM. You’re even told to keep a portion of it for yourself. Now you need to deposit the leftover cash in a Bitcoin ATM by scanning a QR code received on your email from the perps. After the transaction, the money is permanently transferred to a Bitcoin wallet managed by the criminals.

Where did the money come from? Most likely, the amount was stolen from someone’s bank account, and you’re simply lending a hand to the criminals by laundering the stolen money into crypto currency.

How can you spot a money mule hiring scam?

Looking for work can give you a headache, especially now, in light of all the company closures. This is the perfect time for scammers to deploy their schemes by offering remote work opportunities. If you are looking for honest work, or know someone who is, we’ve listed some red flags that you should pay attention to while job hunting:

• Employers asking you to transfer funds (usually keeping a percentage) to another financial account (especially in crypto currency) or to deliver merchandise.

• Suspicious websites that have only recently been setup.

• Unrealistic compensation and unconventional letter of employment.

Bad actors are adept social engineers and are known to make up very good reasons to make you help them move money. Walk away immediately! The effects are potentially devastating, including:

• Not being able to access your bank account – authorities will most likely freeze your bank account during the investigation. You will be unable to access any funds, further straining your financial status.

• Criminal prosecution – you may be prosecuted for participating in the money laundering scheme.

• Repaying the losses of other victims – sometimes, the participant is held responsible and is required to pay back the victim.

• Becoming a victim of identity theft – most likely, the criminals have collected your personal information and may use it for other nefarious purposes.

*** This is a Security Bloggers Network syndicated blog from HOTforSecurity authored by Alina Bizga. Read the original post at: https://hotforsecurity.bitdefender.com/blog/coronavirus-job-listings-and-money-laundering-schemes-22705.html

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BBB warns of expected uptick in employment scams during coronavirus crisis – FOX13 Memphis

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“Employment scams generally try to impostor well-known brands so it will look like job notices from a company that you know,” Hutt said. “They will attempt to get people to sign up for some kind of an employment application or HR forms with the purpose of stealing your personal identifiable information.”

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Nearly half of Tasmania's released prisoners are locked up again within two years – ABC Technology and Games

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Tony Bull looks at the camera.

Just one look at Tony Bull’s weathered face and you can tell the former prison inmate has lived one hell of a life.

Key points

  • Prisoner advocates say social stigma and a lack of employment and housing is failing people with a criminal record
  • Most prisoners exit into homelessness and unemployment, with nearly half back behind bars within two years
  • While prison populations are shrinking in Europe, Tasmania’s incarceration rate is climbing and a new prison is planned

In the dim of his Hobart flat, the 54-year-old recounts the story of his life and a moment of insight that saved him, and it is clear it is not the first time it has been told.

“There are three reasons for crime: need, greed and addiction. For me it was more addiction, it was the thrill of the chase,” he said.

The self-described “property crook” and “safe cracker” spent a total of 20 years of his life behind bars in Hobart’s Risdon Prison.

What started as “thrill-chasing” with schoolmates quickly escalated into robbing tens of thousands of dollars from businesses in less than five minutes.

His times in prison left him homeless, unemployed and institutionalised, and ill-equipped to lead a normal life.

“I have many times where I think ‘jeez, it’d be so much easier in jail, I wouldn’t have to worry about anything’,” he said.

handwritten note on the door of Tony Bull's unit in Tasmania.

What ended Tony’s revolving prison door was no thanks to any government support programs, but to a moment of insight he had onboard a fishing boat in the middle of the night.

Risdon Prison, seen from a distance.

“I looked up at the stars in the dark, and I just had this overwhelming sense of freedom. That was the game-changer,” he said.

“That was where I began to redefine myself as not a criminal, not a prisoner, but at that moment, a fisherman and a human being.”

Tony has not been back to jail since, but few former inmates can hope for an epiphany like his to keep them on this side of the fence.

Most need major support to re-integrate back into society, and getting a job and a place to live can be critical to a new start.

A knife carves a wooden box.

Biggest spike in re-offending

This year’s Productivity Commission report found 47 per cent of Tasmania’s prisoners land back behind bars within two years of release.

The figure is up from 39 per cent five years ago, and is the biggest jump in re-offending of any jurisdiction in the country.

The Salvation Army estimated about 750 adults are released from prison every year in Tasmania.

Of those, the Australian Institute of Health and Welfare reports 54 per cent exit into homelessness and 78 per cent exit into unemployment, putting many on a fast track to re-offending.

“You’re just opening that door [from prison] and letting that person walk down the driveway to the first pub, the first drug house, what’s going to happen? It’s pretty obvious,” Tony said.

Tony Bull woodworking in a workshop.

‘Their crimes follow them around’

Finding a job on the outside has been one of Tony’s biggest challenges. He has been rejected by more than 50 employers.

He is now using the woodworking skills he learned in prison to make handmade jewellery boxes to get by — a label he calls “Convict Crafts”.

He hopes to one day run a mentor group for recently-released inmates that provides emotional and financial support by hand-building boxes and selling them at Salamanca Market in Hobart.

“It’s redemption for me in a sense, to try and get people through the experiences I’ve just gone through,” he said.

“It’s my little bit of forgiveness … for myself.”

Jobs at abattoirs, building sites and fishing boats typically don’t require a criminal record check, but as society becomes more security-conscious, an increasing number of industries are demanding police checks.

“I’m always upfront about my record, you have to be, but once they do that criminal check, you’re pretty much knackered,” he said.

Interior of cell at Risdon prison, Tasmania.

The Salvation Army’s Don McCrae has seen first-hand the reactions ex-prisoners get from prospective employers.

“The eyes glaze over and the chairs roll back, and [they say] ‘well, thanks very much for your time, we’ll be in touch’ and you know there’s covert discrimination going on but it’s really difficult to prove that,” he said.

Employment not only provides an income, it also provides former inmates with a new social group to associate with, something meaningful to do and an alternative label to identify with.

“It’s devastating for some people, a lot of them want to come out to just be another face in the crowd, to come out to that anonymity and not have their crimes follow them around,” he said.

‘Everything’s failing us out here’

Rowena Worbey looks at the camera.

Hobart woman Rowena Worbey has been homeless for five years after domestic violence put her on the streets.

She has been in and out of jail a handful of times, where she served multiple stints for driving and assault charges.

“I believe my homeless situation is part of the reason I ended up in jail, or I ended up in the situation I did,” she said.

“I was fighting for my life and scared and I ended up hurting somebody.

“You’re bound to get into trouble because you’re on the streets all the time, so you’re caring about what that bloke’s saying to that girl, or that deal that’s going on down there.

“Everything around you affects you.

“When something bad happens on the outside, you just want to run back to jail and be safe in your cell … there’s routine there, everything’s failing us out here.”

Don McCrae smiles at the camera.

Don McCrae said incarceration “provides that certainty and stability for people who may otherwise have none”.

“People are often actively sabotaging their reintegration to go back to where it’s easier,” he said.

After spending almost a decade working with some of Tasmania’s most notorious criminals, Mr McCrae is at the helm of several support programs for prisoners transitioning back into society, including the Beyond the Wire program.

The Salvation Army-led program replaced the highly successful Reintegration of Ex-Offenders program which, despite seeing major decreases to the state’s recidivism rate, was axed by the state government in 2015.

But the organisation’s “finite” resources are stretched and there’s only capacity to help 66 of the 750 people released from prison every year.

The government’s Rapid Re-Housing program provides just seven former inmates with transitional accommodation, leaving the rest to join lengthy waitlists at homeless shelters.

Lockdowns block access to rehabilitation

For those still inside, questions remain about how effective the system is at rehabilitating prisoners while they serve sentences.

The government pointed to a range of programs designed to reduce the risk of re-offending and says a TasTAFE campus will be operating at the prison by July.

Razor wire fencing.

But with the overcrowded prison at Risdon Vale regularly in lockdown, inmates are often unable to access programs designed to curb re-offending.

The 2019 Productivity Commission report found Tasmanian prisoners had the lowest rate of employment while incarcerated, and the least amount of time out of cells in the country.

It also found Tasmanians pay some of the highest costs in the country to keep people behind bars, with an average cost to the taxpayer of more than $110,000 per year for each inmate.

The government said a recruitment drive had resulted in 40 new correctional officers who will be on the job by April, to address staffing shortages.

Former Risdon Prison inmate Tony Bull and his dog Princess.

Calls to get tough on causes of crime

When asked what inmates need that they’re not getting, Tony replied: “Confidence and opportunity”.

“There’s no reason why a man can’t go to jail a criminal and come out a carpenter,” he said.

“I mean, what would you prefer, someone who can build your house, or someone who can rob it?

“Education brings rehabilitation, and if you don’t combine the two, you’ve got nothing but a paper trail of bullshit programs.”

Retired teacher and former Labor politician Harry Quick is doing his bit to help people get back on their feet.

He recently had a convicted murderer living in his spare room.

“He became part of my life, we shared cooking meals and when I had to go to the mainland for various things, he looked after the house, I trusted him,” he said.

Retired Labor politician Harry Quick

As Tasmania’s prison population continues to climb, there are plans to build another multi-million-dollar prison in the state’s north, to house up to 270 additional inmates.

“It’s about incarceration not rehabilitation and it doesn’t work,” Mr Quick said.

“I wish our prison people and the [Attorney-General] would go visit Europe and see what happens over there. It’s a lot cheaper and you have better outcomes.

“Let’s get tough on the causes of crime, and until we start doing that, more ambulances at the bottom of the cliff isn’t going to help our community at all.”

Dutch prisons close as re-offending plummets

Criminal Court judge and Professor of Penology and Penitentiary Law at the University of Groningen, Sanne Struijk, has tracked the rapid decline of incarceration rates in the Netherlands, which has led to 19 prisons closing over the past few years.

Criminal Court judge Sanne Struijk

“Currently, we have 50 detainees per 100,000 inhabitants and that’s really low worldwide,” she said. “What’s working is there’s an integrated approach, with a variety of sentences.

“The crime rate has dropped and judges are keen to impose conditional and community sentences rather than prison sentences.”

Professor Struijk said incarceration in Dutch prisons is heavily based on reward and earned privileges for inmates, who take responsibility for their rehabilitation.

She said conditional sentences offenders’ liberties, control their behaviour and track their movements to ultimately keep them out of prison.

As a result, just 28 per cent of former Dutch inmates re-offend and return to prison within a two-year period.

In a statement, Tasmania’s Minister for Justice Elise Archer said she made no apology for putting serious offenders in prison to protect victims and the community.

“We have remained steadfast in our commitment to deliver on our promise to pursue reforms aimed at keeping dangerous criminals off the street,” the statement reads.

“We are also working to ensure offenders are successfully rehabilitated and reintegrated back into the community as productive, law-abiding citizens.”

Tools hanging on a wall.

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Chart of the WeekHigher Growth. Lower Crime? – International Monetary Fund

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By Dmitry Plotnikov

Español, Português

Central America remains one of the world’s most violent regions, where about 4.5 percent of the world’s homicides occur. The region has only about 0.5 percent of the world’s population.

But thanks mainly to increased security efforts by the region’s governments, homicide rates are down since 2015. Per 100,000 inhabitants, 2019 homicide rates fell from 108.6 to 36 in El Salvador, from 29.7 to 21.5 in Guatemala, and from 63.8 to 41.5 in Honduras.

During this time, economic activity also increased in the “Northern Triangle” countries of El Salvador, Guatemala, and Honduras. This lends the question—can favorable economic conditions help to keep future crime at bay?

Our chart of the week from a recent IMF staff paper on the relationship between crime and output in the Northern Triangle shows that it does. As the chart depicts, in 2016 in Honduras, a 1 percent increase in observed GDP per capita, driven by higher labor productivity, would lower crime by about 0.5 percent.

In El Salvador, a 1 percent increase in output decreases crime by ⅔ percent, while in the case of Guatemala the effect is the same as in Honduras. Therefore, the chart suggests that the positive effects of better economic activity on crime are similar for a broad set of medium-crime levels.

Better jobs for better lives

By comparing the cost-benefit analysis for an individual’s choice of finding a lawful job versus a life of crime, we find that consistent improvement in the standard of living is key for sustaining crime reduction—especially when crime levels are manageable. The downside of this relationship is, of course, that economic instability or a growth slowdown are detrimental for the security situation.

Our analysis explains why a stronger economy helps to lower crime rates in Central America. First, as productivity and economic activity go up—helping to raise overall incomes—individuals are more incentivized to engage in legal activity, such as paid work in the manufacturing sector, or owning a small business.

This means that criminal activity becomes less attractive. And as more legal jobs become available, our analysis finds that current criminals are less likely to commit high-paying illegal activities, such as extortion, opting instead for job security and stable wages. This has a positive spillover effect as more productive workers and lower security costs increase firm profits, which in turn encourage more firms to enter the market or existing firms to expand—boosting vacancies and employment.

Curbing crime

Given widespread poverty and lack of economic opportunities, as well as perceived corruption, it is not surprising that criminal activity becomes a viable option for some, potentially explaining why crime is high in Northern Triangle countries.

While tough-on-crime policies, such as “Mano Dura” in El Salvador, tend to be popular, they often misfire. Instead, policies aimed at reintegration of convicts in the productive economy, such as in the manufacturing or services sectors, seems to be more beneficial.

More broadly, policies that promote more jobs and higher productivity—such as better infrastructure, lower barriers to entry for new firms, and more-efficient tax systems—are key to strengthening and sustaining growth in the region.

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