Four Arrested in Northern Israel for Alleged Tax Refund Scam

By יהל פרג'

Translated & summarized from Davar by baba

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Hebrew · 6 newsrooms covering

Police in northern Israel arrested four people, including a mother and daughter, for allegedly defrauding hundreds of clients in a tax refund scam worth hundreds of thousands of shekels. The suspects are accused of charging fees for fictitious accounts and illegally withdrawing funds from clients' pension plans, posing them as tax refunds. The operation, dubbed "Emptying the Till," targeted about 500 clients. The investigation is ongoing, and the suspects face a remand hearing.

The story in 6 lines · by baba

Four individuals, including a mother and daughter, were arrested in northern Israel for a tax refund scam.
The alleged scam defrauded hundreds of clients of hundreds of thousands of shekels.
Suspects are accused of charging fees for fictitious accounts and withdrawing pension funds.
About 500 clients paid fees ranging from 400 to 800 shekels each.
The operation, named "Emptying the Till," involved withdrawals from pension funds presented as tax refunds.
Police warned the public against sharing personal information with unknown entities.

Four Arrested in Northern Israel for Alleged Tax Refund Scam — Editorial illustration generated by baba News, not a photograph of the event.

Police in northern Israel arrested four individuals on Sunday, including a mother and daughter, on suspicion of defrauding hundreds of clients in a tax refund scam totaling hundreds of thousands of shekels. The suspects allegedly convinced clients seeking tax refunds to pay fees for opening bank accounts, some of which were fictitious. According to investigators, three women, aged 44 and 21 from Kafr Kanna and 22 from I'billin, initially worked for a legitimate tax refund company. During their employment, they allegedly solicited clients, charged them fees, and later continued their scheme after leaving the company, using client information obtained from a third suspect. The mother and daughter allegedly continued their activities with a 25-year-old relative from Kafr Kanna.

Investigators claim that approximately 500 clients paid between 400 to 800 shekels each. Many victims did not initially report the fraud, prompting investigators to reach out to them proactively. The suspects are also accused of expanding their operation to include withdrawing funds from clients' pension plans, presenting these withdrawals as tax refunds. Clients reportedly received the funds into their accounts and mistakenly believed they were tax reimbursements, subsequently paying the suspects commissions totaling tens of thousands of shekels. This action also reportedly damaged the clients' pension rights and caused further financial harm.

The arrests followed a covert investigation by the Northern District's Fraud Unit, in conjunction with the Northern District Prosecution. Police raided the homes of the four suspects in Kafr Kanna and I'billin, seizing evidence. The suspects are expected to be brought before the Tiberias Magistrate's Court for a remand hearing.

Rachel Binyamin, head of the Northern District's Online Crime Unit, described the group as a "gang" that operated with a seemingly simple method, preying on clients' reluctance to report smaller sums. She highlighted the increased damage caused by the pension fund withdrawals and warned the public against sharing personal information or transferring funds to unknown entities, emphasizing that potential losses can range from hundreds to hundreds of thousands of shekels. The investigation is ongoing.