Jobcenter on social fraud with citizen's allowance in Berlin – this is how mafia clans systematically cash in

It's a system with many cogs – well-oiled, lucrative, and still almost impossible to break. At its core: migrant workers, often from Bulgaria and Romania . They come to Germany legally, usually through word of mouth or through "intermediaries" from their homeland who promise them work, housing, and a better life. What awaits them instead is a business model at the expense of the welfare state – built on mini-jobs, bogus rentals, and social benefits.

For days, the debate surrounding this apparently widespread form of social security fraud involving the citizen's income hasn't abated. More and more cities, including Berlin, are sounding the alarm about professional fraudsters using fake employment contracts and falsified information to obtain citizen's income.

In an interview with the Berliner Zeitung, Jens Krüger, spokesperson for the Berlin job center, explained that the criminal structures primarily originate from Southern and Eastern Europe and exploit migrants from EU countries to obtain citizen's income. "These fraudulent structures sometimes demonstrate a high degree of professionalism, for example, with fake social security registrations, rental and employment contracts, and simultaneous translation services that accompany job center appointments," the spokesperson explained.

Federal Labor Minister Bärbel Bas (SPD) had previously spoken of "mafia-like structures" in an interview with Stern magazine. Her tenor: something must be done about illegal work and the abuse of social benefits. But how exactly does this scam work? What networks are behind it, and why are courts often powerless? A search for clues.

This is how social fraud with citizen's allowance usually works

It usually starts with a job offer. Migrants are hired as marginal employees with official contracts – for example, as cleaners, kitchen assistants, or construction workers. Often, this is a backbreaking, full-time job, according to job centers told the Berliner Zeitung.

However, payment is only made according to the official mini-job rate. There's a system to this: Anyone earning only €556 is entitled to supplementary citizen's allowance – additional money from the state to ensure a minimum subsistence level. The citizen's allowance does not replace unemployment benefits in this case, but it adds to a fictitiously low wage, which, however, doesn't exist in reality.

Despite mini-jobs, citizen's allowance: How social benefits are obtained fraudulently

Job center employees describe what happens with this "supplementary basic security" as a perfidious practice: While the social benefits are paid into the accounts of those affected, a significant portion is transferred to backers or clients. Employers often withhold portions of the citizen's income – and use direct or indirect pressure to do so. In some cases, investigators report, those affected are forced to sign authorization forms or hand over their debit cards.

Families with several children are considered particularly “attractive”

In addition, the employer is often also the landlord. People live at inflated prices in dilapidated houses – so-called " junk properties ," usually with several families per apartment, without heating, sometimes without running water. The rent is claimed as a benefit at the job center. The money goes directly to the same clan that also provides the job.

Particularly perfidious: Families with several children are considered particularly "attractive." According to the Gelsenkirchen Job Center, perpetrators specifically target large households. The reason: Each additional child increases the entitlement to citizen's allowance—and thus the total amount available for payments. For a family of five, this can amount to four-figure sums per month, skimmed off the welfare state.

The mayor of Gelsenkirchen, Karin Welge (SPD), calls the puppet masters "clan bosses." They operate in isolated networks, often organized around families, with language barriers as protection – and with a keen sense for the weaknesses of the German social system. She told the Tagesspiegel newspaper: "I think it would make sense if the right to full social transfers were only available to people who have lived here for a while and supported their families themselves. Because what is currently happening may be called freedom of movement for workers, but it is de facto immigration into the social systems."

Welfare fraud: Criminal prosecution is often difficult

The Duisburg Job Center and other municipalities have already documented several hundred cases of this kind. The extent of the cases often only becomes apparent during home visits or data comparisons with the Financial Control of Illegal Work, they say. But even if discovered, prosecution is difficult – because the amount of evidence is limited, and many contracts and rental agreements are formally correct. The masterminds are almost impossible to catch – the applicants themselves are often trapped in these structures, confirmed Jens Krüger, spokesperson for the Berlin Job Center.

What makes matters worse is that many courts often don't rule in favor of the authorities: If the employee status of EU citizens is questioned, even a mini-job is often enough for a successful urgent application to the social court. Jens Krüger of the Berlin job centers says: "In cases of doubt, social courts rule against the job center's recommendation for the social protection of the individual EU citizen in interim legal protection proceedings."

Berlin's Labor Senator intervenes: Examine findings carefully

Berlin's Labor Senator, Cansel Kiziltepe, is also alarmed. "We take the indications of criminal structures in the collection of citizen's allowance very seriously," Kiziltepe said in response to an inquiry from the Berliner Zeitung. The Berlin SPD politician primarily draws a connection between social benefit fraud and labor exploitation. "We are also investigating this connection for the state of Berlin," the senator added. "My administration does not yet have any conclusive findings. And we will examine them thoroughly." The question also concerns what controls have been carried out in recent years.

Social Affairs Senator Kiziltepe also highlights a key point: Many of the people who apply for citizen's allowance are themselves victims – not perpetrators. We must not allow entire groups to fall under general suspicion. "I strongly condemn the blanket statements about people from Southern and Eastern Europe," emphasized the SPD politician. The goal is, on the one hand, to uncover fraudulent structures and, on the other, to protect those affected. Her primary concern, the senator stated, is to end labor exploitation. People need fair wages, regular jobs, and protection – not stigmatization.

Citizens' income fraud: data exchange often incomplete

According to the Federal Ministry of Labor , 123,379 suspected cases of benefit fraud were investigated nationwide in 2024. Initial suspicions were confirmed in more than 100,000 cases, and more than 44,000 cases were referred to public prosecutors. However, it remains unclear how many of these cases are actually attributable to organized crime. There are no separate statistics for "mafia-like structures."

"The job centers are following up on every tip," the ministry said. However, the structural weaknesses remain for the time being: Data exchange between job centers, tax offices, social security and security authorities is still often patchy. However, the new coalition agreement between the Christian Democratic Union (CDU) and the Social Democratic Party (SPD) federal government provides for "complete and automated data exchange."