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France Detects €450 Million in Family Allowance Fraud in 2024, Up 20%

Enhanced monitoring uncovered a surge in fraud detections, with authorities targeting organized networks and recovering 80% of misappropriated funds.

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Overview

  • Fraud detections in France's family allowance system rose by 20% in 2024, totaling €450 million, driven by over 30 million checks.
  • Authorities attribute the increase to improved control measures rather than a rise in fraudulent activity by recipients.
  • Traditional fraud schemes include concealing income, undisclosed partnerships, and misreporting residency to meet eligibility requirements.
  • Organized fraud networks are expanding, involving identity theft, fake microentrepreneurs, and paid advice on social media to exploit the system.
  • Fraudsters face repayment with a 10% penalty, and severe cases may result in criminal prosecution, as authorities intensify enforcement efforts.