A Zurich couple, both 75 years classic, have reimbursed approximately 280,000 Swiss francs (roughly 304,000 euros) in fraudulently obtained social welfare benefits after voluntarily coming forward to authorities, according to reports from the NZZ newspaper and confirmed by multiple sources.
The couple initially applied for supplementary benefits to the Old-Age and Survivors Insurance (OASI), known as AVS in French and AHV in German, in 2015, declaring an income solely from a pension of 1,419 Swiss francs and savings of just over 70,000 francs held across three bank accounts. Although, investigations revealed they secretly maintained seven bank accounts totaling more than 1.05 million Swiss francs (approximately 1.14 million euros).
Despite two prior checks in 2018 and 2021, the couple failed to disclose the existence of these additional accounts. They subsequently opened an eighth account, adding a further 30,000 Swiss francs to their concealed wealth. The couple also failed to fully declare their assets to the tax authorities.
The fraudulent claims allowed the couple to live comfortably for nearly a decade without drawing upon their substantial savings. According to the Zurich-Limmat public prosecutor’s office, the couple’s actions constituted “fraud by profession.”
After self-reporting the fraud and fully reimbursing the improperly received funds, the couple received a fiscal amnesty. However, they were not exempt from criminal prosecution. Each spouse was issued a fine of 3,600 Swiss francs, along with court costs of 1,000 Swiss francs each, and a suspended pecuniary penalty of 14,400 Swiss francs, as determined by a penal order.
Switzerland’s OASI system is a key component of the country’s three-pillar pension system, alongside occupational and private pensions. The scheme provides financial security for retirees and survivors, but is subject to oversight to prevent abuse.
