France Uncovers €20 Billion Fraud; Plans to Classify Organized Fraud as Criminal Act

March 13, 2025
France Uncovers €20 Billion Fraud; Plans to Classify Organized Fraud as Criminal Act
  • 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


Get a daily email with more EU News stories

Sources

More Stories