New scandal with Bituah Leumi – who is being asked to return payments

Israel's National Insurance Institute (Bituah Leumi) has demanded the return of 15 million shekels from 2,700 citizens who were victims of terrorist attacks. Payments for alternative therapy were spent on smartphones, household appliances, and other purposes. Recipients have been given repayment options and the right to appeal within 45 days.

Israel's National Insurance Institute (Bituah Leumi) has sent official demands for the return of funds to 2,700 citizens who were victims of terrorist attacks. The total amount of financial claims is 15 million shekels. The funds were originally paid as subsidies for alternative therapy courses (acupuncture, water sports, therapeutic horseback riding, and other rehabilitation procedures). After the events of October 7, 2023, about 86,000 Israelis received victim status. In a state of emergency, the agency sought to provide immediate financial support before official disability determination. However, after the program ended in March 2025, an audit revealed that thousands of recipients submitted documents for the purchase of smartphones, household appliances, clothing, shoes, jewelry, airline tickets, and food. Criminal elements became involved in schemes to cash out funds through fake receipts. Bituah Leumi emphasizes that each applicant confirmed they were aware of the list of approved procedures. Those who disagree may file an appeal within 45 days. The agency's leadership stated that public funds must be returned and directed to those who truly need rehabilitation.