How does the AVS compensation box work?

The AVS compensation fund is an institution that manages the contributions and benefits of Old and Superstite Insurance (AVS) in Switzerland. It collects contributions from employers and workers and provides the benefits provided for by AVS, such as old age pension and earnings loss allowances (IPG) Covid.

What is the route to report a suspect of fraud to the AVS Compensation Fund?

To report a suspect of fraud, contact the AVS Compensation Fund directly at the official phone number or via email, providing precise details. Alternatively, please contact the Public Ministry responsible for legal action.

Who pays for loss of earnings Covid if they are a frontier?

The earnings loss allowances (IPG) Covid, delivered during the pandemic, were managed by the Swiss AVS compensation fund. Frontiers could also have the right if they have the requirements of Swiss law. The article mentions that these allowances were intended to support workers who suffered a significant reduction in income due to the health crisis.

What are the consequences if I am caught unduly receiving AHV benefits?

It is a criminal offence to receive undue AHV benefits, as in the case of the CHF 2.7 million fraud mentioned above. The consequences can include reimbursement of amounts received unlawfully, criminal penalties and, potentially, a ban on access to future social benefits. Swiss law provides for severe penalties for those who commit social insurance fraud.

How can I check whether my AHV compensation office is secure?

To protect yourself, it is essential to check the authenticity of any communication you receive from the AHV compensation office. If you have any doubts, contact the institution directly through official channels (website, telephone numbers indicated on official documents). Always keep your contribution and benefit records in order for checks.

2.7 million fraud at the AVS compensation fund: how to protect yourself (cross-border guide)

Di Laura Bianchi · Published on 19 March 2026

Over 80 fake beneficiaries have fraudulently received Covid loss of earnings benefits. The case was revealed by the newspaper "24 heures" and the Public Prosecutor's Office is conducting an investigation.

Context

TL;DR

2.7 million Swiss francs fraud against AVS compensation fund in Ticino.
80 fake beneficiaries received Covid loss of earnings benefits.
Trio of Portuguese citizens and two Vevey fund employees involved.

Key facts

Amount Fraud: 2.7 million Swiss francs
Period: Between 2020 and 2022
Fake Beneficiaries: Over 80
Benefits Type: Covid loss of earnings (IPG) benefits
Investigation: Launched by Public Prosecutor's Office of Vaud
Complaint Filed: June 2022
Source: Newspaper '24 heures'
IPG Benefits Start: March 20, 2020

The Canton of Ticino has recently been shaken by a disturbing news: a 2.7 million Swiss francs fraud against the cantonal AVS compensation fund. The scam, which took place between 2020 and 2022, saw over 80 fake beneficiaries fraudulently receive Covid loss of earnings (IPG) benefits. The case was revealed by the newspaper "24 heures" and the Public Prosecutor's Office of Vaud has confirmed the information, launching an investigation for fraud.

The fraud was orchestrated by a trio of Portuguese citizens, with the complicity of two employees of the Vevey compensation fund. The compensation fund, suspicious of some irregularities, filed a complaint in June 2022. This is a serious case that highlights the need for greater vigilance and preventive measures to protect public funds.

How does the AVS compensation fund work?

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Operational details

The AVS compensation fund is a fundamental institution for the Swiss social security system. It manages the contributions and benefits of the Old Age and Survivors' Insurance (AVS), which provides a pension to Swiss citizens and cross-border workers who have reached retirement age or who are in need. AVS is a mandatory social insurance, and the compensation fund is responsible for collecting contributions from employers and employees, as well as paying the benefits provided.

AVS benefits

AVS benefits include:

Old-age pension: Paid to Swiss citizens and cross-border workers who have reached retirement age (65 years for men and 64 years for women). The pension is calculated based on the contributions made during the working life.
Disability pension: Paid to people who, due to a disability, are no longer able to perform gainful employment. The amount of the pension depends on the degree of disability.
Survivors' pension: Paid to the family members of a deceased person who was entitled to an AVS pension. The amount of the pension depends on the number of dependent family members.
Supplementary benefits: Paid to AVS pension beneficiaries who have insufficient income to cover their basic needs. Supplementary benefits are paid by the cantons and are subject to certain conditions.

AVS contributions

AVS contributions are paid by employers and employees. Employers contribute a percentage of their employees' gross salary, while employees contribute a percentage of their gross salary. Contributions are calculated based on income brackets and are subject to an annual maximum.

The Covid loss of earnings (IPG) benefits

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Key points

The 2.7 million Swiss francs fraud at the AVS compensation fund is a worrying event that highlights the need for greater vigilance and preventive measures to protect public funds. As cross-border workers or Swiss citizens, it is important to be aware of your rights and duties regarding social insurance, and to report any suspicious activity to the competent authorities.

To deepen your knowledge of social insurance and the benefits you are entitled to, we recommend using our salary calculator. This tool will help you better understand your salary and deductions, as well as plan your financial future. Additionally, you can consult our social insurance guide for a comprehensive overview of the different insurances and their benefits.

Remember, prevention is key to protecting public funds and ensuring that social benefits reach those who truly need them. Together, we can contribute to creating a more fair and transparent system.

Source: "24 heures", March 19, 2026.

Frequently Asked Questions

How does the AVS compensation box work?: The AVS compensation fund is an institution that manages the contributions and benefits of Old and Superstite Insurance (AVS) in Switzerland. It collects contributions from employers and workers and provides the benefits provided for by AVS, such as old age pension and earnings loss allowances (IPG) Covid.
What is the route to report a suspect of fraud to the AVS Compensation Fund?: To report a suspect of fraud, contact the AVS Compensation Fund directly at the official phone number or via email, providing precise details. Alternatively, please contact the Public Ministry responsible for legal action.
Who pays for loss of earnings Covid if they are a frontier?: The earnings loss allowances (IPG) Covid, delivered during the pandemic, were managed by the Swiss AVS compensation fund. Frontiers could also have the right if they have the requirements of Swiss law. The article mentions that these allowances were intended to support workers who suffered a significant reduction in income due to the health crisis.
What are the consequences if I am caught unduly receiving AHV benefits?: It is a criminal offence to receive undue AHV benefits, as in the case of the CHF 2.7 million fraud mentioned above. The consequences can include reimbursement of amounts received unlawfully, criminal penalties and, potentially, a ban on access to future social benefits. Swiss law provides for severe penalties for those who commit social insurance fraud.
How can I check whether my AHV compensation office is secure?: To protect yourself, it is essential to check the authenticity of any communication you receive from the AHV compensation office. If you have any doubts, contact the institution directly through official channels (website, telephone numbers indicated on official documents). Always keep your contribution and benefit records in order for checks.