Certified Fraud Examiner 2025 – 400 Free Practice Questions to Pass the Exam

Extortion is primarily characterized by acquiring something through force or fear. This illegal act involves one party coercing another into giving up something of value, often money or property, under the threat of harm, exposure, or other adverse consequences. In extortion, the pressure applied is typically unlawful, contrasting sharply with legitimate business dealings or negotiations, where persuasion and mutual consent play crucial roles.

The nature of extortion highlights the unethical manipulation of power dynamics, where the extorter exploits the victim's fear or vulnerability. This could involve threats of physical violence, financial loss, reputational damage, or other forms of intimidation, creating an environment where the victim feels compelled to comply to avoid negative repercussions.

Understanding this characterization is essential for identifying extortionate behavior and differentiating it from other forms of negotiation or legal actions that are conducted within ethical and lawful boundaries.