Fraud investigations in Brazil

Brazilian law enforcement agencies are conducting various investigations into financial and social security fraud schemes.

In Paraíba, authorities launched ‘Operação Falso Score’ to target the ‘indústria do limpa nome’ (clean name industry). This scheme allegedly used class action lawsuits to secure judicial injunctions that temporarily removed debt restrictions from consumer credit reports. Investigators believe the scheme could be linked to losses of approximately R$ 130 billion across Brazil. The operation involved search and seizure warrants in João Pessoa and Cabedelo, with investigations extending to São Paulo.

Separate investigations involve the embezzlement of over R$ 4 million from Banco do Brasil by former managers who allegedly used privileged access to client data to issue cards and withdraw funds. Additionally, the Federal Police launched ‘Operation Alter Ego’ in Paraíba to investigate social security fraud, where an individual is suspected of using a false identity for over a decade to illicitly receive the Continuous Cash Benefit (BPC/LOAS).