Israeli National Insurance Demands 15 Million Shekels Back From Sderot Residents Over Misused Aid Funds

The National Insurance Institute of Israel has demanded the return of approximately 15 million shekels from around 2,700 residents of Sderot who received financial aid following the October 7 attacks. The aid was intended for rehabilitation and alternative treatments such as acupuncture and therapeutic riding, but the institute alleges that many recipients misused the funds for unauthorized expenses including airline tickets and mobile phones.

This issue came to light after Sderot city council member Eliran Jerbi shared that dozens of residents contacted him, expressing distress and confusion over the repayment demands. The National Insurance Institute clarified that the complementary treatments covered were strictly from a predefined list published on their website and included in the claim forms submitted by victims.

Additionally, the institute revealed that some fraudsters exploited the situation by encouraging victims to submit falsified receipts in exchange for payments, which were then submitted to the National Insurance for reimbursement. Out of hundreds of thousands of legitimate receipts, about 2,700 cases were identified as fraudulent, totaling over 15 million shekels. Since October 7, approximately 86,000 civilians have been recognized as victims of hostile acts in Israel, with immediate aid provided even before disability percentages were determined.