The government will vote today (Sunday) on a proposal from the National Security Ministry that, if approved, would mark the most dramatic move yet against protection rackets—bringing in the Shin Bet, creating a government compensation fund for victimized businesses, establishing a witness protection unit, expanding police enforcement powers, and advancing a series of legislative reforms targeting organized crime. An emergency task force led by National Security Minister Itamar Ben-Gvir will be established, including the Shin Bet.
Police attribute the surge in indictments to the creation of two dedicated protection racket units in the north and south, and to legislation championed by Itamar Ben Gvir’s Otzma Yehudit party in July 2023 that for the first time addressed the collection of protection money—not just extortion. According to the data, 309 indictments were filed in 2024, the number jumped to 573 in 2025, and as of April 2026, another 253 indictments have already been filed, alongside thousands of open investigations.
According to the proposal, protection rackets are defined as a national threat harming personal security, governance, freedom of occupation, and the Israeli economy. The document states that crime organizations are effectively operating a “shadow tax” on business owners, contractors, and farmers, and that the costs ultimately roll down to the general public through the cost of living and state budgets. The damage to the Israeli economy from the phenomenon is estimated at approximately ₪4.5 billion per year.
Under the plan, Ben Gvir would be authorized to lead a national emergency operation in cooperation with all government ministries, establishing special teams and an inter-ministerial forum including the police, Justice Ministry, Tax Authority, local government, and business owner representatives. In addition, the Shin Bet, Israel’s internal security agency, would be directed to take part in combating protection rackets for three years.
The program also includes establishing a dedicated unit to protect witnesses and threatened business owners, providing professional support, protective measures, and personalized protection plans. Approximately ₪10 million per year and dedicated staff positions will be allocated for this purpose. Additionally, a government compensation fund will be created to compensate business owners for property damage and lost income resulting from protection rackets, alongside a recovery mechanism that will allow the state to collect the money back from the protection racketeers themselves.
The proposal also includes expanded use of technological tools in crime areas, legislative amendments to allow protected testimony and early witness testimony, and advancing laws to prevent crime organizations from participating in public tenders and security companies.