A nationwide operation targeting suspected social welfare fraud saw over 200 officials from the Federal Audit Office for Shadow Economy execute searches across six states on Tuesday. The raids, coordinated by the Main Customs Office in Landshut, focused on individuals and businesses believed to be involved in a complex scheme exploiting the security sector.
The simultaneous searches took place in the early morning hours, impacting locations in Bavaria, North Rhine-Westphalia, Berlin, Baden-Württemberg, Hesse and Rhineland-Palatinate. Authorities seized business records, data storage devices and mobile phones as part of the investigation.
Preliminary assessments suggest the potential loss to state and social security funds amounts to at least €1.5 million. The scheme, described by customs officials as a “chain fraud” allegedly involved the use of shell companies to evade social security contributions. Employees are suspected of being partially or entirely unregistered and paid with undeclared funds.
The investigation remains ongoing, with authorities pursuing leads and analyzing the confiscated materials to fully uncover the scope and details of the alleged fraudulent activities.