Up to 600 people are thought to have been claiming state payments on the Ionian island of Zakynthos, after falsely registering themselves as blind.
“The abuse does not only involve people claiming to be blind, but also people saying they have other disabilities,” said one islander.
“When they investigated, they found taxi drivers who had declared themselves blind,” he continued.
Shopkeepers and farmers are also suspected of making fraudulent claims.
All benefit payments have been put on hold, while the authorities probe the alleged abuse. It has angered those who do have genuine claims.
“We haven’t received any benefits for our daughter for the past four months. We won’t get any money until everything is clear,” said the parents of one woman who is registered blind.
While it is upsetting some, the crackdown to save the state some money could not come at a more crucial time for Greece – as it tries to dig itself out of a pit of debt.