Brazil moves to protect elderly from digital loan fraud and scams

Brazil is addressing rising digital threats against elderly citizens through both legislative proposals and security warnings. Bill 2995/26, currently under review by the Chamber of Deputies, seeks to prohibit the offering and contracting of payroll loans for individuals aged 60 or older exclusively through AI, virtual assistants, or automated bots. The bill mandates physical signatures or biometric validation at bank branches to prevent fraud and over-indebtedness. If passed, any operations conducted solely through automated digital systems would be considered null and void.

Simultaneously, authorities are warning of a surge in digital scams targeting INSS retirees. Criminals are impersonating social security officials via WhatsApp, SMS, and phone calls, using the ‘false proof of life’ tactic. Scammers threaten the immediate suspension of benefits to coerce victims into clicking malicious links or sharing sensitive documents and banking data. The Ministry of Social Security has clarified that official proof of life is now conducted automatically through the cross-referencing of public databases, such as vaccination records and electoral data, requiring no manual action from the beneficiary.