National Police Disrupts Fraud Network In Bizkaia Involving Social Benefit Schemes
The Government Delegation announced the dismantling of a fraud ring that exploited public assistance programs in Bizkaia, amassing more than one million euros through the misuse of Income Guarantee for Work (RGI) funds and the rental housing aid system. The operation targeted a scheme that used 62 counterfeit identities to enroll fake claimants with the Basque employment service, Lanbide, and to siphon benefits intended for vulnerable residents.
In this mid-year crackdown, the Bilbao Provincial Immigration and Border Brigade carried out a coordinated effort that led to the detention of twenty-three individuals. All those arrested, including the alleged leader of the group who is of Senegalese origin, face charges that include foreign origin, participation in a criminal organization, fraud, and the creation of forged documents. The investigation points to a centralized operation that used forged identities to access social support meant for those facing real economic hardship.
The ring controlled a batch of 62 fake profiles, exploiting them to channel funds to the group’s beneficiaries. The scheme primarily involved housing assistance and basic income payments, with each fake claimant expected to receive about 857 euros monthly, combining RGI and PCV allowances. This led to a total embezzlement of roughly 1.09 million euros before authorities intervened.
Members of the network presented themselves at Lanbide offices under the guise of real residents, using false passports and fabricated registration details to activate benefits. In some cases, accomplices rented properties and listed these fictitious individuals on official records, creating a counterfeit but plausible path to ongoing funding.
To keep the fraud alive, the group used altered documents to prove three-year residency in the Basque Country. This residency requirement was a key trigger for eligibility, allowing them to collect benefits from the moment a fake file was created. The ringleader reportedly directed the operation to permit beneficiaries to receive aid across multiple municipalities within Bizkaia, including Durango, Santurtzi, Berriz, Iurreta, Basauri, and Getxo.
Moreover, the network forged medical reports and training completion certificates to avoid benefit suspension when alleged recipients failed to appear in person at Lanbide offices. These falsified documents created a false sense of compliance and allowed continuous access to funds that should have been blocked for irregular cases.
The initial phase of the investigation began with the arrest of a Cameroonian national early in the year, followed by nine more apprehensions at the end of March. Police searches of two residences yielded a cache of forged documents and electronic evidence, including 22 counterfeit passports, 16 bank books registered under fake IDs, 17 credit cards, nine mobile devices, an external hard drive, and assorted paperwork tied to Lanbide applications.
Further actions occurred on June 2, when twelve more suspects were detained in connection with the same operation. Those detained were subsequently released after giving statements at the Bilbao National Police Headquarters and upon appearance before the Bilbao Investigation Court No. The ongoing case highlights the complexity of modern benefit fraud networks and underscores the importance of robust verification processes in public assistance programs. Authorities continue reviewing the full set of evidence to ensure that every facet of the scheme is understood and that restitution is pursued for the impacted residents and public coffers.