Spanish authorities in Málaga uncovered a fraud against the Social Security system, totaling over 1.36 million euros ($1.48 million), the National Police said Tuesday.
A couple of companies are reportedly involved, and four individuals have been arrested on charges related to Social Security crimes and obstruction of enforcement.Â
The investigation focused on two companies—one in the elderly care sector and the other in construction—that systematically evaded their dues by hiding income and using third-party accounts.
The elderly care company, despite generating significant revenue, hid its income to avoid paying its debts, which amounted to 963,306 euros ($1.05 million). The company failed to declare insolvency and continued operations without facing legal consequences.
Similarly, the construction company used third-party accounts, including those of the owner’s son, to conceal income and evade enforcement actions. Despite accumulating substantial debt, the business continued expanding.
Investigators used financial audits and digital forensics to uncover hidden assets and unpaid debts. Collaborating with the Treasury General of Social Security, they identified discrepancies and methods used to conceal the fraud.
Both companies engaged in extensive fraudulent activities, causing significant damage to the Social Security system. The investigation reportedly halted further damage and uncovered additional companies involved in similar practices.
