National Insurance Institute reveals details of fraud involving victim allowance funds
Following repayment demands sent to 2,700 victims of hostile acts, a senior National Insurance Institute official has disclosed details of a fraud scheme. Investigations uncovered forged receipts and the misuse of rehabilitation funds for personal purchases, including consumer electronics and flights.
The Director of the Investigations and Intelligence Division at the National Insurance Institute, Amir Shaharbani, revealed in an interview with 103fm additional details regarding the case of repayment demands sent to approximately 2,700 victims of hostile acts. Internal audits conducted by the organization uncovered cases where funds intended for reimbursement of alternative treatments were used for unauthorized purposes.
According to Shaharbani, the investigation began following internal control processes and information received by the institute's intelligence unit.
"We understood that, unfortunately, we are dealing with an incident of fraud in the treatment of the insured, and we decided to conduct an in-depth check," he said.
During the investigation, authorities discovered instances of forged receipts, altered amounts, and falsified supplier names. Shaharbani claimed that some insured individuals acted in cooperation with suppliers who agreed to issue receipts that did not reflect the transactions actually performed.
Instead of financing alternative treatments intended to assist in the physical and mental rehabilitation of victims of hostile acts, some of the funds were used to purchase iPhones, mobile phones, audio systems, portable speakers, and flights abroad.
The affair was exposed after the National Insurance Institute announced it had contacted approximately 2,700 victims of hostile acts with a demand to return about 15 million shekels. According to the institution's data, since October 7, 2023, about 86,000 civilian victims of hostile acts have been recognized, and as part of initial assistance, reimbursements were provided for alternative treatments—a benefit that remained in effect until March 2025.
Shaharbani stated that anyone who received funds they were not entitled to will be required to return them. At the same time, the National Insurance Institute is allowing those who received a repayment demand 45 days to present evidence that they indeed received the treatments they declared.
At the end of the interview, Shaharbani addressed public reactions, noting that he believes many understand the necessity of enforcement, as the funds were strictly intended for the rehabilitation of victims of hostile acts.
