Citizens' money scandal: This is how social fraud in our cities thrives!

Citizens' money scandal: This is how social fraud in our cities thrives!

Schwerin, Deutschland - In the past few months, reports on social fraud with the citizens' benefit have been increasing. Job center from different cities, including Duisburg, Gelsenkirchen and Berlin, raise the alarm and describe a worrying phenomenon that is connected to "mafia structures". Minister of Labor and Social Affairs Bärbel BAS (SPD) describes these criminal organizational forms, which come mainly from South and Eastern Europe, as a serious grievance that requires urgent measures. With targeted fraud mechanisms, such as fake registrations, rental and employment contracts as well as support from translator services, children, in particular, try to get more civil allowance more than they are entitled to.

The problems are diverse; According to the job centers, excessive rental prices and the improper purchase of child benefit are among the most common types of fraud. Much of the citizens' money does not flow into the pockets of the migrants entitled to perform, but is paid to criminal masterminds. These structures are not only a topic for areas affected by poverty, but also extend nationwide. The Berliner Zeitung specifically brings the trend into play that labor migrants from Bulgaria and Romania are legally coming to Germany - often through word of mouth or mediator - and here in mini jobs, such as cleaning staff or kitchen aids, for a maximum wage of 556 euros. This payment provides you with a claim to additional citizenship.

difficulties in uncovering and persecution

However, the investigation is challenging. The contracts are often formally correct, which is why the criminal prosecution of these structures is made more difficult. In many cases, the courts decide in favor of the applicants because the evidence is thin. Around 123,379 suspected fraud was checked nationwide in 2024, with over 100,000 initial suspected cases of being confirmed, as the Berliner Zeitung reported. However, the vast majority of these cases are not pursued, which considerably hinders the fight against the problem.

In order to master the problem, the job centers urgently demand an automated data exchange between different authorities. However, the traffic light government has shortened the funds for the job centers-from 4.8 billion euros in 2022 to just 4.15 billion euros in 2024. These cuts lead to an overload of the staff, which is already faced with a high control effort.

Reforms in planning

The new minister Bas has big plans. In an upcoming reform process, among other things, the sanction options for civil allowance recipients who do not strive for work are intended to be tightened. It is also sought to smash the existing criminal structures. A complete and automated data exchange between job centers, tax offices and other authorities is sought here. The focus is also on the entitlement to freedom of movement.

In Germany, around 5.4 million people receive citizens' money, of which 2.7 million are not labor marketable due to disability or further training. Another 830,000 are upsters whose income is not sufficient, while 1.9 million people are actually considered unemployed. The challenges that arise from this situation demand not only for effective reforms, but also for a comprehensive rethink in the administration and control of social benefits.

How the reform plans and the fight against social fraud can be implemented in practice remains exciting. The need for changes and better structures has quickly become clear and urgently wants to be tackled - for more justice in social security.

like [Merkur] (https://www.merkur.de/wirtschaft/buergergeld-bid-breit-breit-Mehr- Mehr-jobcenter-packen-aus-zr-93779134.html) and Berliner Zeitung. Also [fris.://www.fr.de/wirtschaft/MeSuch-beim-buergergeld-phaenomen-fuer-Aufruhr-zum-tei-Hat-Das-System-93775048.html) has also informed about the reforms and the approach to combating abuse, which plays a central role in the future of civil allowance.