Main Customs Office Gießen Uncovers Millions in Damages - Hesse's massive crackdown on undeclared labour uncovers €13M in fraud losses
Customs authorities in northern, eastern, and central Hesse conducted large-scale inspections in 2023, focusing on undeclared labour, illegal employment, and welfare fraud. Over 850 employers and thousands of workers were scrutinized during the crackdown.
The checks targeted key industries prone to undeclared work, such as construction, hospitality, freight transport, logistics, cleaning services, and nail salons. In total, 858 employers and 11,670 individuals were examined across the region.
Authorities prioritized cases involving organized forms of undeclared labour. Many investigations required further in-depth follow-ups to gather evidence. The Giessen Main Customs Office alone discovered €13 million in lost revenue for social insurance and tax systems.
The crackdown resulted in 3,543 criminal proceedings and 2,094 administrative offence cases. Courts imposed fines totaling €830,000 and prison sentences adding up to 260 months. Regulatory penalties and additional payments reached around €1.7 million.
The inspections revealed significant financial losses from undeclared work and fraud. Legal consequences included heavy fines, prison terms, and millions in recovered funds. Authorities have indicated that similar enforcement actions will continue in high-risk sectors.
