Thousands of Probes Launched Regarding Fraud Allegations in Coronavirus Aid Programs
Fraud Investigations Across Germany:
It's estimated that German prosecutors are currently handling over 10,000 cases of alleged COVID-19 emergency aid fraud and related scams, according to data from the German Judges' Association. The total damages are estimated to be in the tens of millions of euros. These figures come from a survey of justice ministries and public prosecutors' offices in the 16 federal states, as reported by Germany's "Redaktionsnetzwerk Deutschland" (RND).
Sven Rebehn, the federal managing director of the German Judges' Association, commented that the criminal investigations related to the COVID-19 crisis are likely to keep the judiciary busy for quite some time. Despite the expiration of various state aid programs, new reports of fraudulent COVID-19 emergency aid are still trickling in, Rebehn noted.
One issue highlighted by Rebehn is the delay in reporting suspected crimes to law enforcement by banks distributing aid. These instances often require intensive, case-by-case investigations that cannot be handled as standardized mass proceedings.
According to the survey, North Rhine-Westphalia has the most cases, with over 4,300 pending. The Cologne public prosecutor's office alone is investigating around 900 cases of fraud involving more than nine million euros in subsidies. Berlin follows closely, with over 2,000 cases under investigation, resulting in damages exceeding six million euros for taxpayers.
Bavaria has over 1,000 cases under investigation, with around half involving misuse of applications for COVID-19 emergency aid. The remainder involves schemes such as selling counterfeit protective masks, stealing credit card data on fake websites, or attempted extortion by threatening COVID-19 infection.
Hesse has recorded around 1,000 suspicions of fraud related to COVID-19 aid payments, while Hamburg is anticipating around 1,000 cases to be processed by public prosecutors in the coming weeks and months. Lower Saxony has reported over 800 cases with potentially more than seven million euros paid out incorrectly.
In Saxony, public prosecutors are investigating around 500 cases of fraud, subsidy fraud, and money laundering, with total damages exceeding five million euros. Saxony-Anhalt, Baden-Württemberg, Schleswig-Holstein, Mecklenburg-Vorpommern, Brandenburg, Rhineland-Palatinate, Saarland, and Bremen also have significant numbers of cases under investigation. Thuringia did not provide any figures, according to RND.
Extensive fraud during the pandemic has been a global issue, with similar cases reported in the United States and Canada. Fraudsters have used sophisticated schemes, often targeting vulnerable populations, and employing stolen identities and AI-enabled technologies.
Other business sectors, such as finance, have also been affected by the rise in crime and general-news worthiness due to the COVID-19 crisis. The survey reveals that banks distributing aid have delayed reporting suspected fraud cases to law enforcement, necessitating complex, individual investigations.
