Brazil's Severance Indemnity Fund or FGTS scam and how to avoid it

Brazil’s Fundo de Garantia do Tempo e Serviço, also known as FGTS – which translates to Severance Indemnity Fund –, was created to protect employees who were terminated without cause. In 2022, Brazil’s Federal Government created the FGTS emergency withdrawal program as a provisional measure to provide workers with resources and to bolster the economy.

And, as always, criminals were quick to take advantage of the situation to create a new scam, known as the emergency withdrawal fund scam, whereby thieves steal the money made available through the Caixa Tem application, launched by the bank Caixa Econômica Federal, also referred to as Caixa, for citizens with a positive balance in active FGTS accounts. 

Let’s take a closer look and learn more about the scam so you don’t fall victim to it!

How the scam works

When the Brazilian government makes the FGTS emergency withdrawal available, money is automatically transferred to Caixa Tem, an application that allows citizens to transfer the balance to another bank account. 

In the FGTS emergency withdrawal scam, criminals collect victims’ data and use them to register on the application. They can then steal the available balance. These data can be acquired in several ways, such as:

• Data leaks;

• Purchase of data on illegal forums;

• Stalking profiles on social networks;

• Phishing attacks. 

How to remain protected 

Attention, attention, attention! This is the key word to steering clear of criminals and ensuring your FGTS balance is kept safe. To help you out, here are some of the best tips to protect yourself, with a list of all the critical points to watch out for to avoid the FGTS scam.

• Mistrust links received through social networks and messaging apps. Criminals can steal your data through fake links announcing promotions, giveaways or great opportunities. If you receive something like that, don’t click on it! Visit the official website of the store supposedly offering the benefit and check if it’s real.
  

• Download the Caixa Tem app via official channels. Fraudsters usually create fake apps, which are almost identical to the real ones, intending to steal your data. So, only download the Caixa Tem app or any other app from the official website of the developer or through your smartphone’s official app store.
  

• Register on the Caixa Tem app now! As stated earlier, criminals use real data to register on the Caixa Tem app. As such, if you haven’t registered yet, do it now. This quick and simple action makes it harder for you to fall victim to the FGTS emergency withdrawal scam.
  

• Be wary of calls, messages or e-mails supposedly sent by the bank Caixa Econômica. The bank has previously made it clear that it does not contact citizens to request personal data. So, if you get a call, a message or an e-mail about the FGTS emergency withdrawal program, don’t provide your information or click on any links.

You've fallen for the FGTS scam. What now?

If your money has been stolen through the Caixa Tem app, gather up all the evidence available to prove it wasn’t you who withdrew the funds. With said evidence in hand, contact Caixa via phone number 0800 512 6677 or visit your nearest Caixa bank branch as soon as possible!

Article originally written in Portuguese by Perallis Security Content Team: O que é o golpe do saque extraordinário do FGTS e como se proteger? — Perallis Security