The private security sector is thriving with the rise of organized crime in Ecuador, but gangs are also infiltrating the industry

As crime continues to rise in Ecuador, the private security industry has grown rapidly, but there is increasing evidence that criminal organizations are infiltrating the sector and using it for their own purposes.

The specialist magazine InSight Crime illustrated the situation with a recent case involving Carlos Joel GC, alias “Carlitos”. According to Ecuador's Ministry of the Interior, Carlitos, a drug trafficker, was the leader of one of the largest criminal organizations in the country. He also used the services of private security companies for his drug trafficking so that he could operate undetected by the authorities.

The rise of private security firms in Ecuador has been driven by increasing demand for protection from businesses and government, which in turn is caused by escalating organized crime. In 2023, Ecuadorians spent $922 million on private security services, a significant increase from $745 million in 2016.

The number of new security companies has also risen sharply. 194 companies were founded in 2023 alone. Despite President Daniel Noboa's efforts to combat crime through military and police measures, According to local reports, predatory crimes such as extortion, kidnapping and robbery continue to rise in parts of the country.

The government has identified gaps in its security strategy and has therefore turned to private security companies. In July 2023, the Ecuadorian National Police launched a program to improve cooperation with private security companies, link surveillance systems and facilitate information sharing. In addition, the government has revised laws to give these companies greater access to weapons, reduced taxes on guns and ammunition, and relaxed restrictions on civilian ownership of firearms.

However, criminal groups are taking advantage of the growing security industry. Corrupt legal processes have allowed some criminals to avoid conviction and establish or infiltrate security firms. These companies offer criminals legal protection to carry out their activities, such as money laundering or arms imports. An investigation revealed that a leader of the Lagartos gang owned a security company despite numerous weapons offenses.

In some cases, criminal groups also posed as security companies to extort local businesses. High-profile incidents such as the use of private security companies by Carlitos and another gang leader, Junior Roldán, have raised doubts about the extent of the problem.

Officials and industry leaders suspect that infiltration of private security firms by criminal organizations is widespread, with more than a dozen companies nationwide said to be linked to criminal groups.