Criminal defense for Social Benefits 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 social benefits through false or omitted information (fraud under Section 263 StGB)

Social Benefits Fraud in Germany – Overview

An accusation of social benefits fraud can affect anyone, often unexpectedly – through a letter from the Jobcenter, the Employment Agency, the Family Benefits Office (Familienkasse) or the Customs Office (Hauptzollamt). In legal terms it is a form of fraud under Section 263 of the German Criminal Code (StGB). Anyone who obtains benefits such as citizen’s allowance (Bürgergeld), unemployment benefit, housing benefit, child benefit, social assistance or student finance (BAföG) through incorrect or incomplete information – or who fails to report relevant changes – risks criminal proceedings. This page provides an overview; the individual benefit types are covered on the linked pages.

What counts as social benefits fraud?

Social benefits fraud is not a separate offence but an application of fraud under Section 263 StGB. Liability arises where a person deceives an authority about facts relevant to a benefit and thereby causes a payment to which there is no entitlement. The deception may be active (false statements in an application) or by omission – namely where a statutory duty to provide information is breached. The central provision is Section 60 of the First Book of the Social Code (SGB I): recipients must disclose all facts relevant to the benefit and report any changes without delay.

Typical situations include undisclosed income or assets, unreported work, an undisclosed household or needs-based community (Bedarfsgemeinschaft), an unreported change of address, or an undisclosed stay abroad. Not every omission is criminal, however: a specific duty to inform, intent, and a resulting financial loss are all required.

The variants at a glance

Depending on the type of benefit, the competent authority, the reporting duties and the typical allegations differ:

• Citizen’s allowance fraud (Bürgergeld) – benefits under SGB II, administered by the Jobcenter (formerly ALG II / Hartz IV).
• Unemployment benefit fraud (ALG I) – benefits under SGB III, administered by the Employment Agency, especially where undeclared work is involved.
• Housing benefit fraud (Wohngeld) – benefits under the Housing Benefit Act.
• Child benefit fraud (Kindergeld) – administered by the Family Benefits Office.
• Social assistance fraud – benefits under SGB XII, administered by the social welfare office.
• Student finance fraud (BAföG) – educational support under the BAföG.

Which authorities investigate?

Initial indications often arise from automated data comparisons between benefit providers, tax offices, the pension insurance and registration authorities. Where the benefit office identifies a discrepancy, it usually files a criminal complaint; the investigation is then led by the public prosecutor, frequently with the assistance of the police or specialised investigation units.

The Financial Control of Undeclared Work (Finanzkontrolle Schwarzarbeit, FKS), part of the German Customs Administration, plays a special role where the receipt of benefits is linked to undeclared work or illegal employment – for example where unemployment benefit or citizen’s allowance is drawn alongside unreported work.

Expanded powers of the customs offices since 2026

On 1 January 2026, the Act on the Modernisation and Digitalisation of the Combating of Undeclared Work came into force, significantly expanding the powers of the Financial Control of Undeclared Work. The main customs offices (Hauptzollämter) now act as a so-called “small public prosecutor’s office”: in suitable cases they may conduct and conclude investigations into social benefits fraud independently, without the public prosecutor having to delegate the prosecution first. They have also gained expanded powers of identity verification and simplified access to police databases. For those affected, this means that cases linked to undeclared work are handled more quickly and more autonomously by customs – which makes early defence all the more important.

What penalties apply?

The basic offence under Section 263 StGB carries a fine or imprisonment of up to five years. For first-time offenders and modest amounts, proceedings often end with a fine or a discontinuation, where appropriate subject to conditions. In particularly serious cases (Section 263(3) StGB) – for example commercial conduct or a loss on a large scale – the range increases to between six months and ten years. In addition to the criminal proceedings, the wrongly received benefits are always reclaimed under social law; this reclaim is separate from the criminal assessment and arises even where the criminal case is discontinued.

Defending a social benefits fraud case

The defence typically focuses on three points: the specific duty to inform, intent, and the calculation of loss. Was there in fact a duty to report the particular fact? Was the person aware that they were concealing a relevant change? And is the loss assumed by the authority actually calculated correctly – or would parts of the benefit have been paid even with correct information? Before any statement, the case file should be inspected; anything said to the Jobcenter, the Family Benefits Office or customs can be used in the criminal proceedings. Statements should therefore be made only after legal review and through your defence lawyer.

Frequently asked questions

Is social benefits fraud a separate offence? No. It is prosecuted as fraud under Section 263 StGB, frequently committed by omission where a duty to report changes is breached.

Do I have to repay the benefits? The social-law reclaim of wrongly received benefits is separate from the criminal case and generally arises even if the criminal proceedings are discontinued.

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

Should I make a statement to the Jobcenter or customs? Not before your defence lawyer has inspected the file. You are not obliged to incriminate yourself; statements should be made only through your lawyer.

Practical example and particularities

Example: A recipient fails to declare a savings account when applying. Years later, under the automated account-retrieval procedure, the bank reports interest income that does not match the declarations. The office files a criminal complaint and reclaims benefits. In criminal law, however, only the amount that would not have been paid on a correct declaration counts – if the assets were below the protected allowance, there is often no loss despite the incorrect statement.

An overarching particularity of all social benefits is the separation of criminal and social law: the recovery claim arises regardless of fault, whereas criminal liability requires intent. Anyone who merely forgets a change, or does not grasp the complex crediting rules, acts at most negligently – and negligence is not enough for fraud under Section 263 StGB.

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

Summons or accusation of Social Benefits 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 Social Benefits 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.