Private security flourishes with increased organized crime in Ecuador, but gangs are infiltrating the industry too

The private security industry in Ecuador has expanded rapidly as crime continues to surge in the country, but there is growing evidence that criminal organizations are infiltrating the sector, using it to further their operations.

Specialized outlet InSight crime illustrated the situation by detailing a recent case involving Carlos Joel G.C., alias "Carlitos." According to Ecuador's Ministry of the Interior, Carlitos, a drug trafficker, headed one of the country's largest criminal organizations. He also used private security companies to facilitate his drug trafficking activities, allowing him to operate undetected by authorities.

The rise of private security companies in Ecuador has been fueled by increasing demand for protection from businesses and the government, driven 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 surged, with 194 created in 2023 alone. Despite efforts by President Daniel Noboa to crack down on crime through military and police measures, local reports indicate that predatory crimes such as extortion, kidnapping, and robbery continue to increase in parts of the country.

Recognizing gaps in its security strategy, the government has turned to private security for support. In July 2023, the Ecuadorian National Police launched a program to improve cooperation with private security firms, linking surveillance systems and facilitating information sharing. The government has also revised laws to allow these companies greater access to arms, reducing the tax on arms and munitions and easing restrictions on civilian firearm ownership.

However, criminal groups are taking advantage of the growing security industry. Through corrupt legal processes, some criminals have avoided convictions, allowing them to set up or infiltrate security companies. These companies provide criminals with legal cover to carry out their activities, such as laundering money and importing weapons. One investigation found that a leader of the Lagartos gang owned a security company despite facing multiple arms charges.

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

Officials and industry leaders suspect that the infiltration of private security companies by criminal organizations is widespread, with more than a dozen companies believed to be linked to criminal groups across the country.