Overview
- The Federal Audit Court, which voted Wednesday, ordered the INSS to stop issuing new payroll‑deducted credit, including credit‑card consignado, benefit cards, and personal loans, until safeguards work as intended.
- INSS and Dataprev have 45 days to file a technical report that proves the controls are effective, while those two agencies and the Central Bank have 30 days to present tougher oversight options for card‑based consignado.
- The ruling cites signs of fraud, failures in loan authorization flows, and a suspected leak of sensitive beneficiary data linked to the e‑Consignado platform.
- Auditors found the INSS benefits directorate has only four staff to watch roughly 65.35 million contracts, which makes manual supervision ineffective and leaves retirees at risk of unauthorized charges.
- The court listed fixes that must go live, including blocking approvals without required documents, stronger biometric checks, stopping loans in the names of the deceased, forcing deposits into the benefit account, and curbing forced add‑on insurance.