Coronavirus

Caixa freezes ‘hundreds of thousands’ of suspect emergency salary accounts

Pedro Guimarães, chairman of public bank Caixa, announced on Tuesday that “hundreds of thousands” of bank accounts receiving the federal government’s coronavirus emergency salary have been suspended due to suspected fraud.

Mr. Guimarães told website InfoMoney that around 5 percent of accounts receiving the benefit nationwide were blocked due to fraud concerns. Users that had their account wrongfully blocked can present their personal information to one of Caixa’s branches to request it be unblocked. The emergency salary program — instituted by the Brazilian government to offset financial losses due to the Covid-19 pandemic — has been linked with numerous fraud attempts since its inception.

In June, the Comptroller General’s Office (CGU) had already recovered BRL 42 million (USD 7.68 million) in wrongful payments made to fraudulent accounts, while total fraud figures are expected to be much higher.

As previously covered by The Brazilian Report, government miscues managing the emergency payment have played a role in millions of Brazilians inadequately receiving the BRL 600 (USD 115.64) monthly salary, while many who are eligible still await Caixa’s approval.

Support this coverage →
Rafael Lima

Rafael is a Communication student at Wake Forest University, and a student fellow of the Pulitzer Center on Crisis Reporting.

Recent Posts

Sabesp privatization edges closer with São Paulo legislation

The São Paulo City Council on Thursday approved legislation authorizing Brazil’s largest city to sign…

1 hour ago

Brazil’s AI regulation gets first draft to guide upcoming debates

The preliminary report on AI regulations presented to Brazil’s Senate last week provides a middle-of-the-road…

2 hours ago

Ayrton Senna, a true Brazilian hero

In 2000, Formula 1 great Michael Schumacher had just racked up his 41st race win,…

20 hours ago

OECD improves Brazil’s GDP growth forecast once again

Overall, the worldwide economic outlook has improved according to the Organization for Economic Co-operation and…

21 hours ago

Brazil missing the target with its match-fixing drama

“This is f***ing corruption, it has to change,” protested an irate John Textor, owner of…

22 hours ago

Rio Grande do Sul declares state of calamity due to rains

Eduardo Leite, governor of the southern Brazilian state of Rio Grande do Sul, on Wednesday…

22 hours ago