In a sweeping response to a major fraud scandal, the Brazilian federal government has launched a new initiative aimed at protecting retirees and pensioners from unauthorized deductions from their benefits. Dubbed "Operação Sem Desconto," or "Operation Without Discount," the operation seeks to address the alarming issue of fraudulent associative discounts that have reportedly siphoned off billions of reais from the country's social security system.
On May 8, 2025, government ministers held a press conference at the Palácio do Planalto to provide updates on the operation, which has revealed a sophisticated scheme involving unauthorized deductions from the pensions of retirees and pensioners linked to various associations. Gilberto Waller, the newly appointed president of the Instituto Nacional do Seguro Social (INSS), announced that approximately 27 million insured individuals would be informed that they had not been victims of these fraudulent activities. This communication will be delivered through the Meu INSS app and the 135 service channel.
"Today, the INSS is communicating to 27 million insured individuals that they have not suffered any associative discounts, allowing them to rest easy," Waller stated. For the estimated 9 million individuals who have been affected by these unauthorized deductions, the INSS will provide information on May 13, 2025, detailing the discounts applied to their accounts.
As part of the initiative, beneficiaries will be able to contest the discounts through the Meu INSS app or by calling the INSS hotline. If a beneficiary indicates they did not authorize a deduction, the system will automatically generate a request for reimbursement from the respective association. The associations will then have 15 business days to either prove the legitimacy of the deduction or to reimburse the affected individuals.
Waller emphasized that the INSS would defend the rights of the citizens against the associations involved. "The INSS will take the necessary steps to ensure that no citizen is left at a loss," he assured. If the associations fail to comply with the reimbursement requests, legal actions will be initiated by the Advocacia Geral da União (AGU).
Jorge Messias, the AGU's attorney-general, highlighted the serious nature of the fraud, which has been estimated to involve up to R$ 6.3 billion in unauthorized deductions between 2019 and 2024. "We are adopting precautionary measures to protect the assets of the insured and the INSS," Messias stated during the press conference. He confirmed that the AGU has filed an urgent precautionary action to block assets totaling R$ 2.56 billion from 12 associative entities implicated in the fraud.
These entities are accused of operating as fronts for fraudulent activities, allegedly paying bribes to public officials to facilitate the illegal deductions. The AGU has also initiated measures to block financial activities, seize passports of involved individuals, and request the breaking of banking and tax secrecy to trace illicit funds.
The fraudulent scheme reportedly began in 2019 during the administration of former president Jair Bolsonaro and has drawn significant attention from the current government led by President Luiz Inácio Lula da Silva. Messias noted that the current administration has been instrumental in uncovering the fraud, stating, "A criminal technology, a criminal model, was established during the previous government, and we have managed to dismantle this fraud."
The investigation, which is being conducted by the Federal Police in collaboration with the Controladoria Geral da União (CGU), has already led to the dismissal of several high-ranking officials, including the Minister of Social Security and the president of the INSS. Over 200 police inquiries have been initiated, with numerous search and seizure warrants executed, and arrests made.
In a related move, the INSS has suspended all technical cooperation agreements with associations that were involved in the deductions. This suspension aims to prevent further fraudulent activities while the investigation continues.
The government is also grappling with the logistics of reimbursing affected retirees and pensioners. While a new feature in the Meu INSS application is set to launch next week to facilitate the contestation of undue discounts, the government has yet to determine the specifics of the reimbursement process, including the funding sources for the repayments.
As discussions continue among government officials, including members of Lula's economic team, the urgency to resolve the matter grows. There is a consensus that the budget for social security will need to be reinforced to accommodate the reimbursements, which could potentially exceed R$ 6.3 billion. The government is exploring various options, including reallocating funds from non-essential expenditures to ensure that affected individuals receive their due compensation.
Despite the challenges ahead, Waller assured that the reimbursement process would be swift and automatic, aiming to deposit funds directly into the accounts of retirees and pensioners. The government is committed to ensuring that no one is left at a loss due to the fraudulent activities that have come to light.
The ongoing investigation and the government's response reflect a larger commitment to restoring trust in Brazil's social security system, which has faced significant challenges in recent years. As the situation develops, the INSS and the AGU remain vigilant in their efforts to combat fraud and protect the rights of retirees and pensioners across the country.
In summary, the "Operação Sem Desconto" represents a critical step in addressing the systemic issues within Brazil's social security framework, aiming to safeguard the interests of millions of beneficiaries while holding accountable those responsible for the fraud.
