Brazil police to wrap up first INSS discount fraud probes this month

Federal Police directors said the initial inquiries of Operation Sem Desconto, which investigates illegal and unauthorized deductions from Brazil's National Institute of Social Security (INSS) pensions, will be completed by the end of the month. The probe targets a scheme that allegedly diverted around R$ 6.3 billion between 2019 and 2024 through forged signatures and falsified records, involving dozens of associations, unions and front‑running entities.

Final reports will be sent to Supreme Court minister André Mendonça, after which the Attorney General's Office will decide whether to file charges. The police have detained 27 people linked to the operation and continue to examine “side circumstances,” including the possible involvement of businessman Fabio Luís Lula da Silva (Lulinha), son of President Luiz Inácio Lula da Silva, whose case remains under legal treatment. The investigation remains open and further scrutiny of bank, tax and telecom data is expected.