This term refers to the dramatic surge of bank robberies in Los Angeles during the late 1980s and early 1990s, which Gladwell frames as a social epidemic. By focusing on notorious figures like the Yankee Bandit and criminal masterminds such as Casper and C-Dog, the book explores how small groups of individuals can drive widespread criminal behavior. The epidemic serves as a case study for understanding “superspreaders” and the “Law of the Few” in a criminological context.

The “Magic Third” refers to the tipping point where the proportion of a minority group in an institution or society reaches critical mass, resulting in transformative change. Gladwell illustrates this through examples like minority representation in corporate boards and the desegregation of neighborhoods. When a minority reaches one third of the group, their influence grows significantly, shifting the dynamics of the entire system.

Gladwell explores how Miami became the epicenter of one of the largest Medicare fraud schemes in history during the 1980s. This epidemic, led by individuals like Philip Esformes, was driven by a combination of institutional corruption and socio-economic factors. The case study serves as an example of how localized environments can foster large-scale criminal behavior, much like the bank robbery epidemic in Los Angeles.