Germany Uncovers 32 Suspected Social Security Fraud Cases in Hotel and Catering Industry
Customs officials in Germany have uncovered a series of suspected social security scam cases in the hotel and catering industry. On September 19, 2025, the Financial Control Schwarzarbeit of the Customs (FKS) conducted inspections, leading to 32 cases requiring further investigation and 11 cases being investigated for social security scam.
Among the 32 cases, five involve suspected employment of foreigners without the necessary work permits or sham self-employment. Four suspects from Montenegro are being investigated for illegal residence and work at construction sites in Sachsen-Anhalt. Additionally, five cases suggest non-payment of the prescribed minimum wage of 12.82 euros per hour. The inspections, which were risk-oriented and involved questioning 101 people across various regions, also led to the discovery of one foreign worker without a valid work permit, triggering a criminal investigation.
The FKS focuses on combating black work in the hotel and catering industry. Eleven cases involve suspected violations of social security reporting obligations, highlighting the need for thorough checks and compliance with regulations.
The recent inspections by the Customs Service have shed light on potential social security scam and labour law violations in the hotel and catering industry. With 32 cases requiring further investigation and 11 cases already being looked into, authorities are committed to ensuring compliance with work permit regulations, minimum wage laws, and social security reporting obligations. The risk-oriented approach to inspections will continue to help combat black work in the sector.
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