Greek Authorities Bust EUR 500 M Fraud in Social Insurance Institute

The Greek police busted a scheme that drained aboout EUR 500 M from the Social Insurance Institute (IKA). Photo by EPA/BGNES

Greek authorities have busted a scheme in the Social Insurance Institute (IKA), which had caused damages of more than EUR 500 M to the state, local media reported.

The scheme has been working since 2005 and it provided "virtual" insurance to Greeks and foreigners.

The authorities have found out that employers, with the help of accounting and law firms, issued fake declarations for incomes and insurances of 50,000 people. In this way, they drained large amounts of money from IKA.

The frauds were conducted electronically and with the knowledge of fake employers and employees. About EUR 170.000 were found in one of them, who could not prove their origin.

The police have also conducted searches in the regions of Attica, Thessaloniki, Kavala, Xanthi, Achaia, Ioannina, Corfu, Piraeus, Preveza and Serres.

The homes of 62 people, who are believed to had been involved in the draining scheme, have been searched. They were mostly entrepreneurs, related to construction companies , accounting and law firms.

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