Probe Uncovers Suspected 23 Million Euro Social Security Fraud in German Construction Sector

German authorities are pursuing a large-scale investigation into suspected social security fraud within the construction sector, with preliminary estimates of the illicit gains reaching around 23 million euros. The Augsburg public prosecutor's office is leading the probe, which has already involved significant enforcement action.

Approximately 370 officers participated in coordinated raids across southern Germany, targeting construction sites, business offices, and private residences in the states of Bavaria and Baden-Württemberg. During these operations, evidence was seized, and four individuals were apprehended. The investigation currently names eight suspects.

Authorities allege that the suspects failed to properly register employees for social security contributions and were involved in or aided human smuggling. Investigators believe the scheme operated as an organized criminal group. To partially offset the suspected financial damage, authorities also confiscated several vehicles and cash during the raids.