Police have uncovered a large-scale fraud scheme at the Israel Electric Corporation in which customers' debts were allegedly erased illegally in exchange for payment.

The estimated financial damage is approximately NIS 5 million.

As part of the investigation, a resident of the Arab town of Manda was arrested on suspicion of working together with employees of the Israel Electric Corporation.

According to investigators, the suspect obtained lists of customers who owed money to the company, contacted them, and offered to have their debts cleared in exchange for payments significantly lower than the original amounts owed.

Police believe that after receiving the payments, those involved illegally erased the debts from the company's systems, causing substantial financial losses to the Israel Electric Corporation.

A court has extended the detention of the main suspect, and the investigation is ongoing.

Police estimate that dozens of additional individuals were involved in the scheme who have not yet been arrested or questioned, in addition to those already arrested as part of the investigation.

Investigators also said that private individuals fell victim to the fraud and that efforts are continuing to determine the full scope of those involved and the total financial damage caused.