The European Public Prosecutor’s Office (EPPO) reported a significant 38% increase in financial fraud investigations across Europe in 2024, with estimated damages to the EU budget reaching €24.8 billion, marking a 22.5% rise from the previous year.

Germany and Italy led the charge in VAT fraud investigations, reporting 179 and 149 cases respectively, which resulted in damages of €3.89 billion and €4.65 billion.

By the end of 2024, the EPPO was actively managing 2,666 investigations, with VAT fraud schemes accounting for over half of the total economic losses.

Fraudulent activities spanned a variety of products, including textiles, electronics, ceramics, e-bikes, automobiles, and smuggled goods such as tobacco and medical supplies.

Cyprus had 12 active fraud investigations with an estimated total fraud reaching €572 million, including four cases with cross-border implications and four related to money laundering.

The EPPO focuses on crimes that impact the EU's financial interests, including VAT fraud, money laundering, and corruption, with over €13.15 billion in damages linked to cross-border VAT fraud.

In November 2024, the EPPO launched Operation 'Moby Dick' in Italy, targeting tax fraud networks and successfully seizing numerous assets, including bank accounts, properties, and luxury vehicles.

Greece ranked fifth among EU member states in VAT fraud investigations, with 15 active cases at the end of 2024, while France and Portugal reported 20 and 21 cases respectively.

A sophisticated VAT fraud scheme was uncovered involving over 400 companies across 15 EU member states, which sold electronic devices worth €1.48 billion while failing to pay VAT, resulting in a loss of €297 million.

Common tactics employed by fraudsters included providing false information to secure funds, falsifying invoices, bribing officials, and manipulating financial records, highlighting the urgent need for stronger enforcement across EU member states.

Conversely, Finland, Cyprus, and Estonia reported the lowest numbers of VAT fraud cases, with just 2, 1, and none respectively.

The EPPO's findings indicated that approximately 8% of the offenses investigated involved non-VAT revenue, primarily through false declarations or undocumented smuggling.

In 2024, the EPPO received 6,547 crime reports, reflecting a 56% increase from 2023, with over 70% of these reports originating from private individuals and only 1.7% from EU institutions.