German government flags high hidden benefit fraud, launches data‑sharing and EU citizen rules

The German federal government, through a spokesperson for the Federal Ministry of Labour and Social Affairs (BMAS), says a large number of social benefit fraud cases remain undetected. In 2025, job centres opened about 133,640 fraud investigations, with roughly 110,000 cases confirming suspicion or resulting in criminal complaints. Officials attribute the discrepancy to insufficient coordination among authorities, making the true scale impossible to quantify.

An action plan announced by the government seeks to improve data exchange between agencies and to tighten eligibility requirements for EU nationals. The proposal would require EU citizens to prove a valid residence permit throughout the period they receive benefits, closing a loophole that currently allows those without proof to claim basic security benefits after five years of residence.