Criminal defense for Citizen’s Allowance Fraud in Bonn

Legal Basis

§ 263 StGB

Sentencing Range

A fine or imprisonment of up to five years; six months to ten years in particularly serious cases (Section 263(3) StGB)

Summary

Obtaining citizen’s allowance (SGB II) through false or omitted information to the Jobcenter

Citizen’s Allowance Fraud (Bürgergeld) in Germany – Overview

An accusation of citizen’s allowance fraud is one of the most common forms of social benefits fraud. Anyone who receives Bürgergeld under the Second Book of the Social Code (SGB II) and conceals income, assets or changed circumstances from the Jobcenter may quickly face an investigation for fraud under Section 263 of the German Criminal Code (StGB). Proceedings often begin with a hearing letter from the Jobcenter, a questionnaire from the police, or a summons.

What is citizen’s allowance fraud?

Bürgergeld (introduced in 2023, formerly unemployment benefit II or “Hartz IV”) is a basic subsistence benefit under SGB II. What is punishable is not receiving the benefit as such, but deceiving the authority about facts relevant to it. This can occur through false statements in the application (active conduct) or by concealing later changes (fraud by omission). The decisive duty is set out in Section 60 SGB I: recipients must disclose all relevant facts and report changes without delay.

Typical situations

In practice the allegation usually rests on one of the following:

• Undisclosed income: unreported employment, a mini-job, self-employment or undeclared work alongside the benefit.
• Undisclosed assets: accounts, savings, securities or property above the protected allowance, often connected with an inheritance or gift.
• Needs-based community (Bedarfsgemeinschaft): an undisclosed partner whose income reduces the entitlement.
• Absence and stays abroad: drawing the benefit despite a longer, unapproved absence.
• Changed housing: an unreported move or changed rent.

What matters is always whether a specific duty to inform existed and whether the person acted intentionally. Not every objectively incorrect statement and not every omission satisfies the offence.

Which authorities investigate?

Discrepancies often come to light through automated data comparison – for example with the pension insurance, the tax authorities, banks (account retrieval) or the Family Benefits Office. Where the Jobcenter suspects fraud, it files a criminal complaint and issues a revocation and recovery notice. Where the benefit is linked to undeclared work, the Financial Control of Undeclared Work (FKS) of the customs administration also investigates.

Expanded powers of the customs offices since 2026

Since 1 January 2026, the Act on the Modernisation and Digitalisation of the Combating of Undeclared Work has been in force. It upgraded the Financial Control of Undeclared Work into a so-called “small public prosecutor’s office”: the main customs offices (Hauptzollämter) may conduct and conclude investigations into social benefits fraud independently in suitable cases, without the public prosecutor having to delegate the prosecution first. They also gained expanded powers of identity verification and simplified access to police databases. Where citizen’s allowance is drawn alongside unreported work, cases are now handled more quickly and autonomously.

What penalties apply?

The basic offence under Section 263 StGB carries a fine or imprisonment of up to five years. In practice the sentence depends largely on the amount of loss and the period of receipt. For modest amounts and first-time offenders, proceedings often end with a discontinuation – with or without conditions (Sections 153 / 153a of the Code of Criminal Procedure) – or with a penalty order imposing a fine. For high losses, long periods of receipt or commercial conduct (Section 263(3) StGB), imprisonment is possible, usually suspended for first-time offenders.

Criminal case and social-law recovery

The criminal proceedings and the Jobcenter’s recovery claim (Section 50 of the Tenth Book of the Social Code, SGB X) are separate. The recovery claim arises regardless of intent and continues even where the criminal case is discontinued. Conversely, the amount recovered is not necessarily identical to the criminal loss: in criminal law only the amount that would not have been paid with correct information counts. This distinction is a central line of defence, because authorities sometimes set the loss too high.

Defending an allegation of citizen’s allowance fraud

The defence first examines whether a specific duty to inform was actually breached and whether intent existed – many recipients do not fully understand the complex crediting rules of SGB II and do not act intentionally. The calculation of loss is then reviewed, including allowances and the question whether part of the benefit would have been due even with correct information. The case file should be inspected before any statement; submissions to the Jobcenter or the police should be made only through your defence lawyer.

Frequently asked questions

When does concealing income become a criminal offence? Where there is a specific duty to report it, the recipient acts intentionally, and the concealment causes a payment that would not otherwise have been made.

Do I have to repay the Bürgergeld? The Jobcenter’s recovery claim is separate from the criminal case and generally arises even if the criminal proceedings are discontinued.

Can the proceedings be discontinued? Yes. For modest amounts and first-time offenders, discontinuation under Sections 153 or 153a of the Code of Criminal Procedure is realistic, often after repayment.

Should I respond to the Jobcenter’s hearing letter? Not without legal advice. Anything you state can be used in the criminal proceedings; respond only after your lawyer has inspected the file.

Practical example and particularities

Example: A citizen’s allowance recipient draws benefits for two years and conceals a mini-job paying 520 euros a month. The Jobcenter discovers the work through automated data matching with the Mini-Job Central Office. What matters in criminal law is not the entire amount paid out, but only the difference from what she would actually have been entitled to on correct crediting – after deducting the earned-income allowance. Jobcenters frequently overstate precisely this difference in their criminal complaints.

A particularity of SGB II is the needs-based community (Bedarfsgemeinschaft): if the recipient lives with an employed partner in a community of mutual support, that partner’s income is taken into account. Whether such a marriage-like community exists is often a question of fact – merely sharing a flat is not enough. For assets, the protected allowance applies, and higher allowances apply during the initial waiting period, so not every concealed savings balance creates a loss.

This information is general in nature and does not replace advice in an individual case.

Summons or accusation of Citizen’s Allowance Fraud? What matters now

Make no statement to the police at first

As an accused person you are never obliged to comment on the allegation. Anything said to the police can be used against you. Provide statements only through your defense attorney and only after reviewing the case file.

File inspection comes first

A sound defense against the allegation of Citizen’s Allowance Fraud requires knowledge of the investigation file. Only once the available evidence is clear can we decide whether a statement is advisable or whether remaining silent is the better strategy.

Possible discontinuation of proceedings

Not every case ends in a trial. Depending on the evidence and any prior record, the proceedings may be discontinued for lack of sufficient suspicion (§ 170 II StPO), for triviality (§ 153 StPO) or subject to conditions (§ 153a StPO). Often a penalty order without a public trial can be achieved.

Repayment, loss calculation and intent

In social-benefit cases, repaying the wrongly received amounts is separate from the criminal assessment: the criminal loss covers only the amount that would not have been paid with correct information. The defence examines the specific duty to inform, intent, and the loss calculation by the authority, which is often overstated. A considered, early repayment can favourably influence sentencing and a discontinuation subject to conditions.

What we do after reviewing the file

We examine the evidence for reliability and admissibility, look for procedural errors, develop the defense strategy, seek a dismissal of the proceedings through discussions with the public prosecutor’s office and represent you, if necessary, at trial before the Bonn Local Court or Bonn Regional Court.

Available 24/7: +49 228 504 463 36

This information does not replace a review of the individual case. In criminal proceedings, the defense strategy depends substantially on the case file, the specific allegation and the evidence.