Brazilian Authorities Investigate Banco BMG-Linked Fraud, Audio Evidence, and PFDC Talks on INSS Pension Deductions

The Federal Police of Brazil is investigating fraudulent activities involving unauthorized loans and illegal deductions from the pensions and retirement benefits of Instituto Nacional do Seguro Social (INSS) beneficiaries. Audio recordings obtained by media outlets reveal that associates of Banco BMG used deceptive tactics, including convincing retirees to confirm personal information and then editing the calls to finalize fraudulent loan agreements. Victims have reported a surge in unsolicited calls, unauthorized loans, and even threats. In response, the Federal Public Ministry's Procuradoria Federal dos Direitos do Cidadão (PFDC) convened a meeting with the INSS, the Attorney General's Office (AGU), and the Federal Public Defender's Office (DPU) to negotiate an agreement aimed at ensuring reimbursement for the irregular deductions. The scandal has drawn significant attention to the practices of certain associations and their interactions with vulnerable retirees.