Phantom Children: A Scheme for Siphoning Off Benefits with Bulgarian Involvement Uncovered in Germany

German authorities have uncovered a fraudulent scheme involving the siphoning of child benefits by Romanians and Bulgarians, Bild newspaper reported. They had been receiving child benefits for 59 children who, in fact, do not exist. The fraud, according to the publication, was uncovered by the mayor of the city, not by the relevant federal institutions.

In October 2024, large-scale raids took place at the "White Giant" – the name of a notorious high-rise building in Duisburg. The building houses 32 apartments. The reason for the raids was suspicion that the fraudulent child benefits scheme was being carried out there.

For an extended period, payments had been made in Duisburg for dozens of children who do not actually live there. The mayor’s suspicions that not all 300 children registered at the "White Giant" actually reside there were confirmed. In reality, they live in Bulgaria and Romania, the home countries of the building's inhabitants.