Bulgarian Town Tarnished by Benefit Fraud Scheme

A massive benefit fraud scheme has been uncovered in Sliven, Bulgaria, where thousands of people are believed to have received Universal Credit from the UK without being entitled to it. The scheme is estimated to have netted hundreds of millions of pounds annually.

How the Scheme Worked

Fraudsters used middlemen or “commissioners” based in Sliven to recruit and claim benefits for people living in Bulgaria. Forged documents, including fictitious tenancy agreements, counterfeit payslips, and fake letters from employers, schools, and GPs, were used to support the claims.

Complicity of Benefit Claimants

According to local official Panayotov, many of those involved in the scheme claimed they had been unwittingly implicated and benefited from it. However, officials now believe that benefit claimants were “complicit” in the fraud.

Targeting a Poor District

The Roma enclave of Nadezhda, a largely impoverished district with around 30,000 residents, was particularly targeted by the gang’s activities. While many residents live in poverty, conspicuous displays of wealth have emerged, including newer cars and renovated homes.

Signs of Wealth Amidst Poverty

Local police officer Dinko Podmolov noted that people in Nadezhda had more disposable income than usual, with some even buying second properties abroad or renovating their homes. Many of the larger houses sit empty, as most owners live abroad.

Investigation Leaves a Stain on the Town’s Reputation

The investigation has left a stain on the town’s reputation, which was already struggling economically. The scheme is believed to have enriched only a few individuals, while the majority of residents continue to struggle with poverty.

Estimated Value of the Fraud

According to Panayotov, the fraud was worth an estimated £200 million every year from the UK. He began his own investigation after noticing the town’s sudden displays of opulence during the pandemic.

The scheme has raised concerns about the effectiveness of Britain’s social security system and the ease with which fraudulent claims can be made from abroad.

Key Points

The fraud is believed to have netted hundreds of millions of pounds annually
Thousands of people are thought to have received Universal Credit without being entitled to it
The scheme involved forged documents and fake claims
Many benefit claimants were complicit in the fraud
The scheme has left a stain on the town’s reputation and highlighted concerns about the social security system.