Turkish Social Security Agency AI Audit Cancels 650,000 Pensions
Turkey's Social Security Agency deployed an AI system that cancelled approximately 650,000 pensions over five years, identifying individuals registered as insured despite never working. The system also initiated repayment claims with interest for previously paid benefits, affecting hundreds of thousands of pensioners.
What happened
The Turkish Social Security Agency (SGK) deployed an AI-assisted audit system to detect fraudulent pensions and fake insurance registrations. Over the past 5 years, the system identified approximately 650,000 individuals who appeared as insured workers despite never actually working, and their pensions were cancelled.
The AI system uses algorithmic analysis to identify fake workplaces, shell companies, and false insurance reports, assigning codes in the e-Devlet system to flag the inspection status: 'K' for under investigation, 'Ş' for suspicion of serious irregularities, and 'S' for confirmed fraudulent transactions.
Reported impact
Beyond pension cancellation, SGK sought repayment of all previously paid retirement benefits and covered healthcare costs plus statutory interest. The process can escalate to asset seizure and criminal prosecution for document fraud.
Millions of pensioners reportedly are uncertain about the status of their pensions due to the codes appearing in their e-Devlet records, creating widespread anxiety among the elderly population.
Index analysis
The AI system flagged approximately 650,000 cases as fraudulent based on algorithmic detection of mismatched work status and insurance contributions. SGK officials stated that 'friendly insurance'—registrations made solely to accumulate contribution days for pension eligibility—are classified as high-risk transactions by the system.
The system targets cases where individuals are registered as insured at workplaces where they did not actually work, using pattern recognition to identify shell companies and false business registrations.
Governance controls
SGK officials advised citizens to regularly check their e-Devlet service records and immediately contact SGK if they see suspicious codes. Experts recommended that citizens pursue legal alternatives such as voluntary insurance rather than fraudulent schemes.
Authorities stated that the AI audits would continue and intensify, with emphasis on detecting 'friendly insurance' schemes used to meet contribution day requirements.
Classification
Sources and evidence
Sources not yet published
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