Fraud with citizens' money: Math these clans and how they empty the coffers!

Fraud with citizens' money: Math these clans and how they empty the coffers!

A growing problem is causing a stir in Germany: fraud in citizens' money. More and more job centers are reporting on criminal activities that primarily come from “mafia-like structures,” as Labor and Social Affairs Minister Bärbel Bas (SPD) alarmingly notes. Cities such as Duisburg, Gelsenkirchen and Berlin are particularly the focus of this criminal activity, which is often attributed to organized networks from southern and eastern Europe that exploit our social systems.

The fraudsters use various methods to obtain citizens’ money. A common trick is fake registrations, rental and employment contracts as well as manipulated information about income and assets. Families with large children are particularly affected, as they are entitled to higher benefits due to their number. The job centers are already having massive difficulties in uncovering the fraud, as many of these illegitimate activities take place in secret and are based on highly professional machinations that are often difficult to understand. Merkur reports that there are particular problems with child benefit fraud and excessive rents.

Organized crime and its methods

The fraud mechanisms described are diverse. According to media reports and experts, false information about income and assets, concealing additional income and even fake employment are popular tricks. Migrants from EU countries, especially Bulgarians and Romanians, are, according to Suedkurier often those affected, while at the same time working in mini-jobs and also applying for citizen's benefit. In many cases, employers are also landlords who charge excessive rents for substandard accommodation. But the authorities are faced with a major challenge: the complete withdrawal of citizens' benefit is made very difficult by social courts.

Another point of concern is the inadequate nationwide recording of these fraud cases. For example, over 101,000 cases of benefit fraud were identified in 2022 alone, but how many of these can actually be traced back to organized structures remains uncertain. The problems increase particularly in regions with cheap living spaces and little prospects on the labor market. This makes it clear: this is where the heart of crime beats.

Reactions of the authorities

The job centers are urgently calling for measures to improve controls. Automatic data comparison and electronic payment of wages are required to make verification easier. But as authorities try to get the situation under control, a persistent shortage of staff is adding to the overload. A decrease in available funds in 2024 and 2025 does not make the situation any easier. But how can you take action against these lost funds? Resolute countermeasures are required.

Despite the difficult situation, the authorities are already trying to adapt their strategies. Controls and investigations into suspected fraud are essential to breaking through organized networks. Reclaiming benefits wrongly received could also be expensive for fraudsters. Anyone who cheats in this way must expect a fine or even a prison sentence - in serious cases up to ten years, as can be heard in connection with citizens' money.

The problem of citizen's money fraud shows once again how fragile social security systems are and how important it is to recognize the weak points in the system and address them. Because “there is something to be said” when it comes to preserving the integrity of our social system - especially now that immigration from undoubtedly burdened regions in the upper regions is increasing. A good hand is required to take the right measures. The [ Bürger-Geld ](https://www.buerger-geld.org/news/buergergeld/betrug-beim-buergergeld-wie- criminal-vorgehen/) organization has also recognized that there is an urgent need for action to strengthen the integrity of the social security systems.