How Does Krysha Work?

"Krysha" (pronounced "KREE-sha"), literally means "roof." As a slang word, "krysha" refers to a criminal protection racket, such as a gang that extorts money from a store owner.

Almost every business in Russia pays some kind of krysha, say security experts.

"One fine day, two or three young men show up at your office and say they represent a private security firm," said a Russian private detective with extensive experience in security matters.

"They give you only their first names and pager numbers. They tell a long story about organized crime groups and the dangers of being without a krysha. They say they have good contacts with political and organized crime groups. And by using their connections, they will help the firm avoid the risks of extortion."

But, he added, there is only one way to survive: hire your own, stronger krysha.

There are 10,000 private guard services registered in Russia, but experts say there may be three times that number.

Gerry Williams, marketing manager for O'Gara Security International Inc., said guards are recruited from the former KGB and other military and police agencies.

Security can cost from 15 percent to 30 percent of a firm's

overhead.