Bets, debt and fraud: the other side of the payroll loan expansion

The federal government proposal to create a payroll loan platform aimed at workers with a signed portfolio (CLTs) which may leave the paper later this year, brings with it the promise of the democratization of credit and also sheds light on a number of issues that can aggravate the indebtedness of the Brazilian population and deepen structural problems related to the rampant supply of low-cost credit ( and the famous “bets”, or the platformsbetting sites online, represent one of the biggest challenges in this regard.

Added to this, too, is the fact that the platform can further increase the number of coup cases using the payroll loan mechanism (although this information has not been accounted for in the last two years, in 2022 the Brazilian Procons registered a volume of 57,874 scam complaints involving payroll loans (which amounted to more than six complaints per hour.

In this dangerous revenue, we also add the problem of indebtedness of Brazilian families. Although it has fallen 0.9 percentage points in a year, according to data from the National Confederation of Trade in Goods, Services and Tourism (CNC), released at the end of January, the greater exposure of workers to credit can create a spiral of indebtedness linked, precisely, to bets.

The bet problem: far from over

The“bets” are as the sports betting sites became known, which also ended up paving the way for a new type of betting site, online casinos IO comumumind called as “Tigrinho game”. The problem is that the law 13,756/2018, which authorized betting companies, also provided a maximum period of four years for the Ministry of Finance to regulate the activity, which did not happen. The result is that these companies operate within a regulatory“”, without clear rules.

With no clear rules, and with a considerable advertising reach, especially in social media, gambling became an epidemic. In 2024, Brazilian families bet around R$ 240 billion on bets 26% leading more than 1.8 million people to default on account of virtual betting. The lowest income families, according to the CNC, were the most impacted: in January last year, they represented 26% 2.

In a context in which the supply of credit is widely facilitated and the risk analysis is not always deepened, many workers can be led to use payroll loans to bet on online games. Obviously, this can lead to an even greater increase in debt, with workers resorting to new credit operations to pay off previous debts, creating a negative spiral of financial dependence. Recent research by SPC Brazil, in partnership with the National Confederation of Shopkeepers (CNDL), points out that the percentage of default among consumers who repeatedly pay for this type of loan has increased significantly, reinforcing the idea that the ease of access to a responsible credit, can transform it into a financial instrument.

More than that, some research points out that up to 60% of users of gambling platforms can use credit money, including payroll, for betting.And to make the situation even more dramatic, the default volume on payroll loans for private sector workers increased by 0.8 percentage points between 2023 and 2024, according to the Central Bank.

Fraud and payroll credit

Recent data from the Central Bank indicate that the volume of payroll loans has grown rapidly in recent years, reaching levels that require more rigorous monitoring of financial institutions and intermediary platforms.

The issue is compounded by the fact that, for the payroll loan platform to operate on a large scale, banks and financial institutions will be required to adopt increasingly robust anti-fraud measures.

The scenario of digitalization of financial services has shown, in recent years, a significant increase in cases of electronic fraud, often sophisticated and difficult to detect. Thus, the need to invest in technology and cybersecurity systems becomes imperative to mitigate risks that can compromise not only the financial health of consumers, but also the stability of the financial system as a whole.

In addition, the centralization of operations on a single platform can create an environment conducive to the occurrence of internal fraud and data manipulation. Automation and integration of systems, when not accompanied by robust internal control, open space for malicious agents to exploit vulnerabilities, offering a scenario where the loss can be twofold: on the one hand, the worker is involved in debts that will compromise their income, and, on the other, the financial institution can be a victim of fraud that increases operating costs.

In addition to technology, banks will also need to rely on bank credit formalization services, in which the granting and management of these loans are carried out in a transparent and secure manner. The formalization of payroll loans involves the thorough verification of applicant data, ensuring that loans are granted only to workers who meet specific eligibility criteria.This process includes the analysis of documents, such as proof of income and credit history, to ensure that beneficiaries are able to honor with payments.

Ultimately, the path to be followed must be guided by transparency, responsibility and the search for a balance between technological innovation and the protection of consumer rights.

The payroll loan platform can undoubtedly offer significant benefits, but these benefits cannot be achieved at the expense of the financial well-being of workers. It is imperative that each operation is accompanied by a careful analysis, that anti-fraud measures are constantly reviewed and updated and that consumers have access to clear and accurate information about the risks and conditions of the contracted credit.

In this way, we can transform facilitated access to credit into a tool for inclusion and development, and not an instrument that inadvertently deepens debt and economic instability.The construction of a safer and more sustainable financial environment necessarily involves dialogue between all involved and the implementation of measures that are up to the challenges imposed by the digital age.