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Ex-Employment Agency Chief Urges Legal Overhaul to Curb Organized Bürgergeld Fraud

The government signals autumn steps with stronger data checks and a dedicated center targeting benefit scams.

Overview

  • Detlef Scheele warns that criminal networks have turned benefit misuse into a growing business model using sham minijobs and rundown housing to secure top-up payments, including rent.
  • He calls for revisiting Social Code II Paragraph 7 and tightening the legal concept of employment so fictitious job certificates cannot qualify entire benefit units.
  • Scheele also urges improved automated data matching across authorities to prevent organized schemes from slipping through gaps.
  • Labour Minister Bärbel Bas says she will present concrete proposals in the autumn, and the Federal Employment Agency plans a Kompetenzzentrum Leistungsmissbrauch.
  • CDU general secretary Carsten Linnemann proposes EU-level changes to limit eligibility based on minijobs, while Duisburg mayor Sören Link presses for swift action due to local strain.