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PS21 Report: Kidnap & Ransom

Recent high profile kidnaps have focused greater attention on the largely London-based
kidnap and ransom industry.
Kidnapping varies according to location, and in many ways, the crime is evolving with
the introduction of new technologies.
Different governments handle kidnaps in different ways, some paying ransoms and others
refusing to negotiate.
The legality of paying ransoms is often ambiguous, especially where a government
prefers to withhold such payments as a means of deterrence.
For those with insurance or money to pay, the kidnap and ransom consultancies say they
are the best and most reliable way to bring a loved one home.

On July 6, 2015, Project for the Study of the 21st Century hosted a discussion in London on
Kidnap and Ransom.
The panel was as follows:
Chair: Peter Apps: executive director, PS21
Nigel Inkster: former deputy-chief, Secret Intelligence Service (MI6)
Brittany Damora: senior operations manager, Kidnap & Ransom, Aegis Response
Nigel Brennan: photojournalist and author who was kidnapped in Somalia in 2008 and held
hostage for 15 months
Kidnap for ransom has been a staple part of human criminality for centuries. In recent
decades, however, the existence of kidnap and ransom insurance has created a small but
sometimes lucrative industry for managing such incidents.
For those whose employers or others have taken out the right form of insurance, kidnap
and ransom consultants will negotiate a hostages release and the payment of a ransom.
This, however, can sometimes be at odds with governments, some of whichsuch as the
US, UK and Australiagenerally oppose ransom payments.

In particular, the Somali piracy crisis in the Indian Ocean as well as more recent
kidnappings by Islamic State and others in Syria has raised the profile of both crime and
the industry.
Brennan: I think it is higher profile. All over the globe, we become more knowledgeable about
the kidnap/ransom industry [particularly] because of journalists being taken in Syria, Libya and
places like that.
People can say you are creating an industry by paying out ransoms, which is one way to look at
it. The way I would look at it is obviously from a family perspective of paying a ransomyou
want a loved family member back.
The shape and focus of kidnappings varies widely around the world. Not all get the level of
international media attention given to those of Westerners.
Damora: It is very different wherever you are. In Mozambique, you have South Asians who are
being targeted. Express kidnapping in Latin America is huge [in these cases, individuals are
kidnapped for 2 to 3 days and often taken to cashpoints to extract as much money as possible].
Brennan: What you don't hear about is kidnappings in places like Mexico or that an actor
because it doesn't involve white Westerners spending large sums of money.
Kidnappers may be motivated by a myriad of factors beyond monetary gain, and many
groups are largely driven by the propaganda of the deed.
Inkster: It is very much about propaganda in the case of IS, you know, demonstrating their
power to do things, and highlighting the impotence of the governments of the individuals
concerned to do anything about it. I have to say in the scheme of things, kidnapping for IS has
been quite a substantial revenue earner, but I think that percentage of their earnings is
diminishing.
IS derives revenue from a wide range of rent-seeking activities: extortion, the oil industry still to
a significant degree but probably in unusual perspectives. So kidnapping is simply one of the
rent-seeking lines of revenue that IS has got.
The advent of new technologies has enabled non-traditional forms of kidnap to develop,
rendering the crime ever more difficult to tackle.
Damora: With online currency, bitcoins and things like that, and the development and spread of
technology, the crimes have gotten more opportunistic and cyber extortion is a huge threat.
Inkster: This new approach, whereby you basically take somebodys data and freeze it, encrypt
it make it unavailable and demand a large sum of money to release it, is starting to become a
more attractive option. I mean, the days when you went to rob the bank because the bank is
where the money was, is gone. And it is a challenge because police forces, law enforcement, do

not have anything like the requisite skills and resources to deal with this sort of problem, you
know if it gathers momentum and reaches critical mass.
Different governments tend to approach ransom payments in very different ways.
Inkster: If you look particularly at some of the European countries it is pretty clear that the
governments and the intelligence services do actively engage in the process of kidnap
negotiations [to pay ransoms and get their national hostages back]. France, Germany, Spain and
Italy have all been involved. Intelligence services in those countries are engaged in brokering
ransoms with a variety of different people.
It's not just the European countries. The Turks have had a significant contingent of diplomats
kidnapped in Syria by IS and it's pretty clear that the Turkish intelligence service was the
primary vehicle for negotiating the release of those people.
The US, UK and Australia take a very different approachalthough they will not usually
block a ransom payment or prosecute families who pay.
Brennan: I knew that my government, the Australian government, wouldnt pay ransom. Their
policy is obviously not to negotiate, facilitate or pay ransom. So I was very aware from the day
we were abducted that it was going to end with my family, and with quite a substantial amount of
money.
Inkster: If you like the extreme Anglo-Saxon position as espoused by the United States and the
United Kingdom, you dont pay an exchange bill because that evidently encourages the thing.
Once you have paid the Danegeld, you'll never get rid of the Dane, to quote Rudyard Kipling.
Considerable ambiguity often shrouds the legality of paying ransom because governments
may prioritize national security on the whole before defending the lives of a select few.
Inkster: The United Kingdom government is one of those that doesnt pay ransom, but it also
doesnt prosecute if ransoms are paid. So its somewhat of an ambiguous situation. I think the
United States plays significantly in that direction, and there was a recent case where they made it
clear they were not going to treat this as a criminal issue.
Brennan: From what Ive learned after my kidnapping, [my family] was basically led down the
yellow brick road by the government. There were a lot of conflicting reports from different
government departments, like the Department of Foreign Affairs and Trade and the Australian
Federal Police. So you have [DFAT] saying its illegal to pay ransom, and then you have the
Australian Federal Police on the exact same day saying to my family, how quickly can you put
out assets to pay ransom?
Just as strategies to manage kidnap vary, so do their outcomes.
Inkster: I would simply make the point that you cant negotiate with fanatics. You might be able
to engage in something that you call negotiations in order to buy yourself time, but
Negotiations imply concessions; fanatics dont do concessions.

I remember one particular example in Iraq not long after the 2003 invasion where a particular
group did kidnap a British national. We didnt negotiate. We sent in the Special Forces to deliver
a visiting card to these people because we were able to find them pretty quickly. And we saw the
word going around very quickly after that raid: stop kidnapping the Brits, its not worth it. Stick
to the Italians and the French because they pay.
Damora: That said though, the last fourteen people that were released from Islamic State were
paid for by a ransom Only one American out of Syria has come out alive. Whereas the rest,
from the countries that do pay, are all alive now.
Due to differences in priorities, a global consensus on whether or not ransoms should be
paid is not likely.
Inkster: I think the reality is in the broader picture, were never going to get consensus at a
global level on an issue like this. Its just never going to happen. Different governments are
going to be driven by different motives, you know, they have concerns for their electorate, their
own legitimacy, sustainability, et cetera, et cetera, and these considerations are going to drive
what they do. So I think the idea that we can get a kind of global consensus that you dont pay
ransoms to kidnapers is pretty unrealistic.
The kidnap and ransom industry may intervene not only to facilitate the negotiating
process, but also to mitigate the ambiguities of existing policy.
Damora: No one has ever been prosecutedno individual or companyhas been prosecuted
for paying ransom to anyone. Thereve been threats of that, but as far as I know, its never
happened. So when it comes to whether or not were going to get involved in a case, theres
nowhere in the world, weve done Syria, weve done Pakistan, we do extortion cases in first
world countries. Theres nowhere that we wouldnt operate.
Whether or not [the kidnap and ransom] industry has changed because of Obamas new
transparency in the policy, I would have to say I dont think its changed. I think it is still status
quo. American citizens are still going to be targeted for being American. I dont think that there
will be any more targeting, because there is now a clearer shepherding by the U.S. government
on behalf of the FBI to help out victims families. I think, if anything, thats a good thing.

Report by Amanda Blair. Transcript by Amanda Blair and Vanessa Pooudomsak