France Uncovers €20 Billion Fraud; Plans to Classify Organized Fraud as Criminal Act
March 13, 2025
To combat fraud more effectively, the government plans to classify organized fraud as a criminal act and enhance data mining techniques to detect fraudulent patterns.
The nature of fraud has shifted from individual offenders to organized crime, creating significant challenges for public policies.
The government is particularly focused on organized public aid fraud, with scammers increasingly targeting vulnerable individuals through schemes like MaPrimeRenov and personal training accounts.
These recovered funds are viewed as a crucial tool for reducing national debt and public deficits without imposing additional taxes on the middle and lower classes.
Despite these recovery efforts, the expected deficit for Social Security in 2025 is projected to be €22 billion, indicating that recovered amounts will not fully cover public deficits.
Further details on the anti-fraud plan are set to be discussed by Bercy on March 14, 2025.
Recovering these funds is essential for the government's goal of reducing France's public deficit to 5.4% of GDP in 2025, down from approximately 6% in 2024.
The minister highlighted that criminal asset seizures have increased fourfold, reaching €600 million in 2024.
Social and fiscal fraud perpetrated by businesses remains a priority, with nearly €3 billion detected in social fraud in 2024, while the actual fraud could reach €13 billion.
Proposed measures include implementing electronic invoicing to tackle VAT fraud and enhancing recovery efforts for tax fraud, which is estimated to be between €60 billion and €80 billion.
In 2024, France detected a staggering €20 billion in tax and social fraud, as reported by Public Accounts Minister Amélie de Montchalin on March 13, 2025.
The scale of detected fraud has doubled since 2020 for tax fraud and since 2019 for social fraud, with the state recovering €13 billion of the total amount.
Summary based on 4 sources