Overview

• Labor Minister Bärbel Bas warned that “mafia-style structures” in Duisburg’s Weiße Riesen high-rises exploit EU nationals through sham work contracts and welfare claims.
• University of Duisburg-Essen emeritus professor Gerhard Bosch confirms a shift from small-scale moonlighting to systematic fraud cartels using shell invoices and fake employment.
• At least 3.3 million people worked illegally in Germany in 2024, with estimates up to 10 million and a shadow economy projected at €511 billion in 2025, about 12 percent of GDP.
• This year’s planned Bürgergeld reforms will introduce stricter eligibility verification and faster sanction procedures while preserving core family support.
• Endorsements from local authorities and the Paritätischer Gesamtverband reflect cross-party consensus on intensifying legal and procedural measures against organized welfare fraud.