French officials demand record €20billion be paid back after checks into tax and social security fraud

French authorities detected and corrected more than €20billion as a result of investigations into tax and social security fraud in 2025, marking a record high and the first time the combined total has exceeded this threshold.

The figure includes €17.1billion in additional tax and penalties notified to individuals and businesses after reassessments, alongside over €3billion linked to social security fraud. 

The government says the results reflect greater efforts by tax and social security workers, better detection and checking strategies, closer cooperation between different bodies, and better tools.

Artificial intelligence is a key factor, with over 57% of tax inspections related to businesses and 63% relating to members of the public flagged by AI tools. 

The planned roll-out of compulsory electronic invoicing from 2026 is also expected to strengthen controls.

Tax inspections accounted for most of the total amounts identified. The DGFiP (tax authorities) recovered some €11.4billion during the year.

Examples of tax fraud include:

• giving false or incorrect information in declarations;

• transferring assets so as to deliberately become insolvent and avoid tax;

• using fictitious ‘shell’ companies to conceal income or assets;

• asking for unjustified amounts in VAT refunds and credits.

In the social security system, fraud detected, prevented or recovered reached €3.1billion – up 4.1% year-on-year and double the level recorded in 2021.

Family benefits fraud rose notably, with €509million detected by people affiliated to the general social security regime, up 13%. 

This resulted partly from analysis of social media data. Much of it related to undeclared income or false declarations, while residency issues accounted for more than a quarter of cases (eg. claiming despite not being settled residents in France).

Health insurance fraud also increased sharply. The state health insurance authorities identified or prevented €723million in fraud – a rise of more than 15%.

Of this, €286million was fraud prevented before payments were made.

The largest increases were linked to anti-fraud efforts related to patient transport services, health centres and medical equipment suppliers.

Although around half of detected cases involved insured individuals, 84% of the financial impact was linked to fraud by healthcare professionals.

Pension-related fraud and errors identified by the national pension fund authority reached €255million, up 18% compared to 2024. 

Most of this (€223million) was prevented before payments were made. As in previous years, the main issues concerned residency, income, and family situations.

Efforts to combat undeclared work also continued, with Urssaf networks reporting €1.5billion in adjustments. 

Amounts recovered included some €50million from micro-entrepreneur small businesses.

In the agricultural sector, anti-fraud controls identified or recovered nearly €67million, linked to fraud over social security cotisations, illegal work, pensions, healthcare and family benefits.

Work Minister Jean-Pierre Farandou called social security fraud, in particular, “an unacceptable breach of our social contract”, especially at a time when there are financial challenges in keeping the system going.

“The efforts are bearing fruit, but we must go further,” he said.

A bill before parliament aims to give the services increased powers to combat “professional fraudsters”, while protecting those who respect the rules, he said.

It will facilitate faster and tougher action against fraud schemes that are constantly evolving, including higher penalties for the most serious offences.