Police seize $175.8m and remove INSS leaders as probe uncovers unauthorized deductions
Brazil’s federal police announced Wednesday that they are investigating a scheme that redirected over $1.05bn from pension payments managed by the National Social Security Institute, as reported by CityNews.
Authorities said the investigation focuses on 11 organizations active between 2019 and 2024.
These groups allegedly enrolled retirees in associations without their knowledge and deducted monthly fees from their pensions. The retirees had not agreed to join the associations or approved any withdrawals.
Police confirmed that as part of the investigation, they removed Alessandro Stefanutto, president of the National Social Security Institute, along with other directors.
The Associated Press reported that the social security office did not immediately respond to its request for comment.
Federal police executed search operations on Tuesday, seizing $175.8m in assets. They issued arrest warrants for six individuals.
Authorities arrested three of them, while the other three remain at large. Police have not yet identified the individuals taken into custody.
If the probe results in sufficient evidence, those under investigation could face multiple charges. These include corruption, breach of secrecy, document forgery, creation of a criminal organization, and money laundering.
The Brazilian case reflects a wider trend, as other countries have also reported pension-related fraud and mismanagement.
Investigations and audits across different jurisdictions have highlighted recurring vulnerabilities in systems meant to protect retirees.
According to The Scottish Sun, the UK’s Department for Work and Pensions admitted to underpaying state pensions by £804.7m due to administrative errors. More than 130,000 people were affected as of early 2024.
As per The Guardian Australia, an elderly man in Sydney lost more than $230,000 after his son redirected his aged pension and secured loans using his name.
In Nigeria, Newsdesk Nigeria reported that the Independent Corrupt Practices Commission recovered more than ₦20bn from ghost worker pension schemes in 2024.
In Canada, the federal government has issued warnings about pension-related fraud.
The Government of Canada advises individuals to be vigilant when contacted by telephone, mail, text message, or email, as criminals may attempt to obtain personal information by posing as representatives from the Government of Canada Pension Centre.
They emphasize the importance of protecting personal information and being cautious of unsolicited communications.
