The emergence of a lucrative ransom trade for captives taken by the Islamic State (IS) in Iraq and Syria began when IS overran large territories, capturing thousands of civilians.

Desperate families paid ransoms ranging from $10,000 to $25,000 to free their loved ones from IS captivity, creating a multi-million-dollar industry involving smugglers, brokers, and corrupt officials.

Initially, IS directly demanded ransoms from families, but as their territorial control weakened, intermediaries exploited the situation by charging exorbitant fees with no guarantees of release.

Many families faced financial ruin, resorting to selling homes or taking loans, and in extreme cases, even attempting to sell organs to raise ransom funds.

In response to the crisis, the Kurdish Regional Government (KRG) introduced a reimbursement program in 2017 to help families, but this system was exploited, with fraudsters inflating amounts and staging fake rescues to claim government funds.

As IS lost power, some of its fighters attempted to sell captives, using them as currency to fund their escape to Europe, which led to a significant increase in fraud as intermediaries inflated ransom demands and fabricated rescue operations.

Although the ransom trade began to decline around 2020, the same networks adapted to smuggling fighters, weapons, and trafficked individuals across borders, perpetuating the cycle of exploitation.

Corruption was rampant, with officials profiting from the chaos, leaving families without closure or justice, as many captives remained missing, including around 2,600 Yazidis.

Former captives face difficulties obtaining necessary documentation for basic services, contributing to long-term instability and poverty in Iraq.

Legal and bureaucratic challenges hindered rescue efforts, as the Iraqi government required identification documents that many captives no longer had, complicating the process of locating and freeing them.