I'm a fair man; let's do some checking. Here's one:
http://www.macmillandictionary.com/dictionary/american/prote...
"an illegal system in which criminals threaten to harm you or your property if you do not give them money"
How strange; it's not remote close to what you literally read as a dictionary definition.
I've checked other dictionaries too; same story. Here's an idea; why not open up this magical dictionary you have and see what it says under the word "literally".