Berlin Job Center boss reveals massive citizen benefit fraud: “We are dealing with learning gangs”
Gangs are ripping off taxpayers' income – and the taxpayers are paying. Now, new figures reveal the full extent of the fraud: According to a response from the federal government to a parliamentary inquiry by the Green Party, 421 cases of gang-related fraud involving taxpayers' income were registered in 2024 alone. Authorities filed criminal charges in 209 cases. The previous year, there were 229 cases – and only 52 charges. And 2025 has just begun – but by May, 195 new suspected cases had already been reported. Almost every second case ended up with the police.
The scam is perfidious: fake jobs, bogus rents, forged documents—everything looks legitimate, but behind it lies organized fraud. What appears to be a harmless application actually consists of a sophisticated system of exploitation, rip-offs, and theft of social benefits. Gelsenkirchen , Duisburg, and Berlin have been sounding the alarm for some time, demanding better data sharing and more powers. This is also because the perpetrators are becoming increasingly brazen.
Winfried Leitke, managing director of the Berlin Spandau Job Center , observes an alarming professionalization of the methods. He told the Berliner Zeitung: "Unfortunately, the fraudulent structures demonstrate a high degree of professionalism – for example, through fake social security registrations, rental and employment contracts, and translation services that accompany people to appointments at the Job Center."
He cites examples: During random checks and inspections at the Habersaathstraße residential complex at the beginning of July, it was discovered that 82 registrations had been made at two house numbers in the past few months. However, the registered individuals were not staying there. Leitke comments: "The procedure in Habersaathstraße, which was recently thwarted by the Mitte district office, corresponds to a more classic pattern that we repeatedly see."
People – mostly EU citizens from Eastern Europe – are lured to Germany with promises, explains the job center manager. The people behind the scheme provide them with deceptively fake documents that suggest legal residence and entitlement to citizen's benefits. Those affected, however, often live in inhumane conditions, are exploited, and simultaneously act as front persons for a lucrative fraud scheme. Often, the alleged employer also serves as a landlord, interpreter, and contact person – a complete, opaque system. "Many of these people are themselves victims of the structures," Leitke tells the Berliner Zeitung. He adds: "The people behind the scheme profit in multiple ways – through rent, arranged jobs, and ultimately the fraudulently obtained social benefits."
The job centers, twelve of which are located in the capital, are under massive strain. The cases of benefit fraud require a significant amount of investigation – despite already strained staffing levels. "Detecting and prosecuting these fraudulent structures requires significant efforts – despite the already high workload," says Leitke. The job centers are already working closely with the Main Customs Office and the judiciary.
Jobcenter boss in Spandau: We are not investigative authoritiesAt the organizational level, Berlin's job centers are attempting to counteract this. They rely on technical warning systems within specialist procedures, requests for administrative assistance from other authorities, and their own field and investigative services. In addition, there are designated contacts for cooperation with the main customs office and the public prosecutor's office. In parallel, each Berlin job center maintains its own office for processing administrative offenses and as an interface with the investigative authorities. However, one thing is clear: "The job centers are not investigative authorities—we rely on close cooperation with the police and customs," Leitke emphasizes. However, data protection regulations often hinder effective investigations. He therefore supports the political call for automated data comparisons with family benefits offices, tax offices, schools, and security authorities.
Citizens' income fraud: Networks take legal situation into accountBut the judiciary often doesn't make things easier for the authorities. In numerous cases, job centers fail in their attempts to stop benefits – because courts rule in favor of the applicants. "Even if the job center has doubts about the employee status, a mini-job is often enough to award benefits in expedited proceedings before the social court. Courts rule against the job center's recommendation in cases of doubt," says Leitke. The consequence: Networks factor in the legal situation right away.
The managing director of the Spandau Job Center explains that focusing on organized criminal groups should not lead to a general suspicion against all EU citizens. "We examine each application individually," he says, adding: "The vast majority of EU citizens live here legally and are urgently needed in the German labor market – especially in occupations where there is a shortage."
But it remains a battle under difficult conditions. Those behind the scenes learn quickly, adapt their methods, and are often difficult to catch. "We're dealing with learning gangs," Leitke summarizes. "And we must learn as well – faster, more digitally, more networked."
Citizens' income is being reformed: political pressure is growingThe debate about abuse of the citizen's income continues unabated, even in light of the new figures. The CDU-SPD coalition is already working on reforming the reform. Sanctions are to be implemented earlier, and job centers are to be given more powers. The CDU and CSU are calling for decisive action. Carsten Linnemann (CDU) recently announced a comprehensive welfare reform for the fall on Welt TV.
Those who refuse to work are not in need, according to the new interpretation. For Ukrainians, the citizen's allowance is to be canceled retroactively to April 1st – they would then be transferred to the Asylum Seekers' Benefits Act. CDU leader Friedrich Merz also recently called for tougher action against benefit fraud, speaking of "false incentives" and announcing a comprehensive reform of the welfare state. Among other things, job centers are to be strengthened and controls tightened.
Bärbel Bas (SPD) is now to develop proposalsNow the ball is in the court of Federal Labor Minister Bärbel Bas (SPD). She is to develop proposals – a commission will examine by the end of the year where the citizen's allowance can be tightened. Abuse of the citizen's allowance is also a focus, a spokesperson from the ministry confirmed to the Berliner Zeitung: "The federal government is currently examining how the measures agreed upon in the coalition agreement can be implemented." The agreement states: "Large-scale abuse of social benefits both in Germany and by people living abroad must be stopped." Concrete legislative steps are "currently being prepared or coordinated."
Until further notice, everyday life in Berlin's authorities remains a race against well-organized crime.
Berliner-zeitung
