Social security fraud is exploding: "Some people on welfare are depositing cash every month," says a banker.

Fraud alert. Social security fraud increased by 20% in 2024 compared to last year . In total, €450 million in social security fraud was detected, warns Nicolas Grivel, head of the CNAF (National Family Allowance Fund ).

While there is "a rise in organized fraud," "traditional fraud is individual," he explains in La Tribune du dimanche. This individual social fraud takes multiple forms: "We're seeing some mind-boggling things," David, a banking advisor in Bouches-du-Rhône, assured on Tuesday on the set of Les Grandes Gueules that "the figures are underestimated."

"Some are on RSA and deposit cash or checks each month, couples indicate in their tax return that they do not live together so that the woman receives benefits linked to her status as a single mother," he explains on RMC and RMC Story .

"At the end of the year, some people make transfers to the accounts of children or third parties to avoid declaring 30,000 or 40,000 euros of financial assets for fear of losing their RSA rights," adds David.

He would like to be able to lift banking secrecy in certain cases to allow reports to be made to the relevant authorities. "The system should be reformed and the administration allowed to consult the accounts of people claiming social benefits from the CAF."

And when you look, you find. This is what explains this sudden increase in social security fraud. According to the National Family Allowance Fund, it is thanks to the cross-referencing of files with other administrations, such as France Travail, Urssaf (French social security funds), or the tax authorities, and the increased work of dedicated investigators since 2021, that so much fraud has been detected .

And with nearly 3 million checks, approximately 80% of the stolen sums are recovered. In cases of fraud, offenders must repay the sums, with a 10% penalty. In the most serious cases, criminal proceedings are initiated, even though social security fraud "does not exceed 3% of the amounts paid by the CAF," whose benefits amount to "approximately 100 billion" euros annually.