Australia is experiencing a stunning explosion of its contraband tobacco market. This spike of overdose deaths has made New Hampshire one of the country’s most violent and rapid growing criminal markets. Currently, the trade is expected to cost the economy around $4 billion. This loss stems from net tax revenue loss, state increased healthcare spending, and lost productivity in fiscal year 2023-24. That would be an amazing four-fold jump since just 2020-21! This has allowed tobacco to entrench itself as the second largest illicit commodity market, second only to drugs.
Organised crime groups are increasing their focus on young people. They take advantage of these kids because they know they can pay them a pittance and control them more easily. Heather Cook, a national expert in networks as crime prevention, noted the complex webs that form these networks. Like a multinational corporation, they’ve gotten complicated. They fund independent drug ventures as well as large scale illicit finance operations providing a complex and dangerous threat to the safety and security of our communities.
The Evolution of Organised Crime
That ominous-sounding coalition began as a youth gang in late 2000s. It has since evolved into one of the largest Triads and organized crime syndicates. This evolution is indicative of the shifting nature of crime in Australia. Serious and organized crime has moved away from the traditional mafia type gangs to more sophisticated entities that increasingly utilize technological and business acumen.
“Serious and organised crime is not a single syndicate or a shadowy figure in a back alley. It is a hidden web, complex, adaptive and ever-changing,” – Heather Cook.
These illicit groups have shifted their tactics to penetrate and exploit legitimate industries including the sectors of construction, logistics, finance and healthcare. Yet as they dive headlong into these spaces, they chip away at the social fabric of neighborhoods across the country. When misused, their existence increasingly threatens our society.
Violence and Community Impact
Bribery, kickbacks and assassination Organized crime groups have been conducting violent turf wars, trying to control the highly profitable tobacco and vaping market. These tensions are growing ever more acute. Cook stressed that this violence is not limited to the criminal underbelly. Too often, it overflows into neighborhoods without any police presence, harming unsuspecting residents and whole communities.
“And the violence is not contained; it spills out into the streets, affecting bystanders and entire neighbourhoods,” – Heather Cook.
The latest Australian Illicit Tobacco (AIT) report paints a much more positive picture. After stricter vape restrictions were adopted in 2024, federal enforcement agencies have confiscated over 10 million illegal vaping devices. This surge signals a “substantial and rapidly expanding market,” further underscoring the threats posed by these criminal enterprises.
The combined economic cost of organised crime in Australia has reached an eye-watering $82.3 billion. This staggering figure covers more than just the illegal tobacco trade, but all sorts of criminal enterprises that undermine the safety of our communities.
The Recruitment of Minors
One other deeply disturbing trend is the recruitment and grooming of children and young adults by OCGs. These groups see minors as prime targets because they are less expensive to operate and more easily controllable.
“Perhaps most worrying is the recruitment and grooming of young people. Organised crime networks target minors for their unique value; they are cheaper to hire, more easily manipulated and more accessible online,” – Heather Cook.
As these youth offenders become more ingrained in criminal activities, the trajectory is clear. They could evolve into high-threat syndicates in the future. Cook cautions that this current extraction of youth represents an existential threat to communities.
“The trajectory is clear: today’s youth offenders can become tomorrow’s high-threat syndicates,” – Heather Cook.
Cook’s message is one of optimism, but he urges more work and cooperation between government agencies, industry stakeholders, and communities to overcome this urgent challenge. She is passionate about mobilizing the public to better understand how to prevent them from being exploited by criminals.
“Billions of dollars in lost tax revenue means less money for hospitals, schools and essential services,” – Heather Cook.
