An allegation of fraud in Germany can arrive without warning, whether through a police summons, a search of your home or business premises, or notice that an investigation is already underway. Facing this situation from abroad, or while unfamiliar with German criminal procedure, can make it considerably harder to know what to expect. At Schlun & Elseven Rechtsanwälte, our criminal defense lawyers regularly defend clients facing fraud allegations in Germany.
German criminal law recognizes a wide range of fraud offenses, each with its own specific legal requirements. These range from ordinary fraud under Section 263 of the German Criminal Code (Strafgesetzbuch, StGB) to computer fraud under Section 263a StGB, as well as specialized offenses such as subsidy fraud, investment fraud, and insurance fraud. This variety makes it extremely difficult for anyone accused of fraud to accurately assess their case and respond appropriately without legal expertise. A sound legal assessment requires not only a thorough knowledge of the relevant criminal provisions, but also an in-depth understanding of continuously evolving case law and the particular circumstances of each case.
Anyone confronted with an allegation of fraud, or who is already the subject of an ongoing investigation, should seek legal representation without delay. At every stage of the proceedings, timely and strategically considered action can be decisive for the outcome. Our criminal defense lawyers have many years of experience defending clients against fraud allegations of all kinds, including clients who are not German nationals or do not speak German as a first language, and who may be managing this process either from abroad or while already living in Germany. We provide a detailed analysis of each case, explain your rights and the available procedural options in detail, and develop a defense strategy tailored to the specific facts of your situation.
Fraud under German Law
Fraud is regulated under Section 263 of the German Criminal Code (Strafgesetzbuch, StGB). Under this provision, fraud is committed by anyone who, intending to obtain an unlawful pecuniary advantage for themselves or a third party, damages the assets of another person by causing or maintaining an error through false pretenses, or by distorting or suppressing facts. The penalty for simple fraud ranges from a fine to five years’ imprisonment. Particularly severe cases of fraud can be punished with imprisonment of up to ten years. An attempt to commit fraud is also punishable under Section 263(2) StGB.
As the range of penalties suggests, fraud is a complex offense with both explicit and unwritten requirements. In simple terms, the offense requires the following elements:
- a deception concerning facts, whether active or by omission
- an error on the part of another person caused by that deception
- a disposal of assets by the person in error
- a financial loss resulting from that disposal
- intent, together with an intention to enrich
Beyond simple fraud, Section 263(3) StGB lists several factors that regularly indicate a particularly severe case, known as standard examples (Regelbeispiele), which raise the maximum sentence to ten years’ imprisonment. Meeting one or more of these factors has an aggravating effect on sentencing, although they are not elements of the offense itself, only sentencing considerations. This means that while the presence of such a factor typically indicates a severe case, a court can still decline to treat the case as such where the specific circumstances do not support that conclusion. In practice, the most relevant standard examples are acting on a commercial basis or as a member of a gang, causing a financial loss of substantial scale, and faking an insured event. This list is not exhaustive, and unnamed circumstances can also support a finding of a particularly severe case.
A related but distinct offense is computer fraud under Section 263a StGB, which does not involve deceiving a person, but instead concerns improperly influencing the outcome of a data processing operation, for example by manipulating a program or using unauthorized data.
Subsidy Fraud
Subsidy fraud is regulated separately under Section 264 StGB. This offense covers making false or incomplete statements to a subsidy-granting authority about facts relevant to the subsidy, using funds or goods in violation of restrictions attached to a subsidy, failing to disclose facts relevant to the subsidy as required by law, or using a certificate obtained through false statements in a subsidy procedure. Unlike fraud under Section 263 StGB, subsidy fraud can also be committed through gross negligence in certain cases, not only intentionally. The offense carries a prison sentence of up to five years or a fine, rising to between six months and ten years in particularly severe cases, for example where the offender obtains a subsidy of substantial value through gross self-interest or falsified documents, or abuses a position as a public official. We discuss this offense in full detail on our dedicated page on subsidy fraud in Germany.
Investment Fraud
Investment fraud under Section 264a StGB applies to the sale of securities, subscription rights, or shares in a company’s profits, or offers to increase capital contributions for such shares. It covers making false favorable statements, or concealing unfavorable facts, in prospectuses or financial disclosures directed at a broader group of investors, where those facts are material to the decision to invest. The offense carries a prison sentence of up to three years or a fine. Read more on our page addressing investment fraud in Germany.
Bank and Credit Fraud
Bank and credit fraud, regulated under Section 265b StGB, involves submitting false or incomplete documents, such as balance sheets, profit and loss statements, or asset overviews, or making false written statements about a company’s financial position in connection with an application for a loan, or failing to disclose a material deterioration in that financial position after submitting such documents. This applies to applications made on behalf of, or purporting to be on behalf of, a business. The offense carries a prison sentence of up to three years or a fine.
| Offense | Statute | Maximum Penalty (Standard) | Maximum Penalty (Severe Case) |
|---|---|---|---|
| Fraud | Section 263 StGB | 5 years or a fine | 10 years |
| Computer Fraud | Section 263a StGB | 5 years or a fine | 10 years |
| Subsidy Fraud | Section 264 StGB | 5 years or a fine | 10 years |
| Investment Fraud | Section 264a StGB | 3 years or a fine | — |
| Bank and Credit Fraud | Section 265b StGB | 3 years or a fine | — |
Immediate Steps to Take
If you are contacted by police or learn that you are under investigation for fraud, remain calm and avoid making any statements without legal representation present. Early involvement of an experienced criminal defense lawyer can make a considerable difference to the outcome of your case. Our team will guide you through the initial stages of the investigation, help you gather and preserve relevant documents and records, and ensure that you do not inadvertently harm your own defense.
Schlun & Elseven: Professional Defense in Fraud Cases
An accusation of fraud can have serious consequences for the person accused. Fraud is an Offizialdelikt (an offense prosecuted by the state on its own initiative), meaning that authorities can continue to pursue a case even if the alleged victim withdraws their criminal complaint. Beyond the criminal proceedings themselves, an accusation often brings significant reputational harm, along with related financial, private, and professional consequences, a risk that is particularly acute for businesses whose customer trust depends on their public image.
Anyone who receives a police summons should be aware from the outset that their conduct can shape the entire course of the investigation. You have the right to remain silent, and you should make full use of it. Without sound legal advice and careful preparation, it is easy to make self-incriminating statements during questioning, and such statements are difficult to correct later, even with the help of an experienced lawyer.
Our lawyers for criminal law review the facts and evidence of your case to develop a suitable defense strategy. In many cases, it is possible to resolve the matter out of court, avoiding a lengthy, costly trial and negative publicity. Which approach best suits your case depends on its specific circumstances, and our lawyers develop an effective, targeted strategy based on the information available, whether that means avoiding a conviction altogether or securing a more lenient outcome.
Our criminal defense lawyers have extensive experience regardless of the type of fraud involved, including computer fraud, embezzlement, subsidy fraud, insurance fraud, and legally complex forms of economic fraud such as investment, banking, or tax fraud. We advise clients on how to respond to related measures such as the freezing of assets, extradition orders, and applications for asset seizure, to protect your legal position throughout.
Fraud Allegations and Immigration Status
For foreign nationals in Germany, a fraud allegation can carry consequences that extend well beyond the criminal proceedings themselves, particularly where the allegation touches on an immigration or citizenship application. A recurring example involves the submission of a fake language certificate during the naturalization process, an issue German authorities have increasingly encountered, and which illustrates how criminal and immigration consequences can arise from a single act.
Document Forgery and Fraud Charges
Submitting a fake certificate typically raises two separate criminal law issues. First, it can constitute forgery of a document under Section 267 of the German Criminal Code (Strafgesetzbuch, StGB). German law defines a document broadly. It is not limited to official government paperwork, and a certificate from a recognized language institute qualifies as a document in the legal sense. Producing, altering, or using such a certificate is punishable by a fine or imprisonment of up to five years. We discuss this offense in full detail on our dedicated page on document forgery under German law.
Second, deceiving an immigration authority about the fulfillment of naturalization requirements through a fake certificate can separately constitute fraud under Section 263 StGB, discussed above. Even where the authority suffers no direct financial loss, German courts have treated unlawfully obtained citizenship as a benefit of equivalent value for the purposes of the offense.
Revocation of Citizenship
Under Section 35 of the German Nationality Act (Staatsangehörigkeitsgesetz, StAG), a naturalization obtained through fraudulent deception, threat, bribery, or intentionally false or incomplete information can be revoked. Revocation is only possible within ten years of the naturalization being formally announced to the person concerned, and it takes effect retroactively, meaning the naturalization is treated as though it never occurred. This can result in the loss of German citizenship, the restoration of a person’s former nationality, and related consequences such as the loss of voting rights or access to certain regulated professions.
Consequences for Residence Status
Where citizenship is lost through revocation, the individual must reapply for a residence permit under the German Residence Act (Aufenthaltsgesetz, AufenthG). Such an application can be refused under Section 5(1) No. 2 AufenthG where there are grounds for expulsion, and conduct such as fraud in a prior naturalization application regularly raises exactly this kind of concern.
How We Can Help
Given how closely criminal defense and immigration law intersect in these cases, our lawyers at Schlun & Elseven Rechtsanwälte regularly advise clients facing both dimensions of the same allegation at once. Read more on our page addressing fake language certificates in the naturalization process.
Fraud Risks and Defense for Businesses in Germany
International companies operating in Germany face distinct fraud risks, particularly where subsidy programs, financing, or internal controls are involved. As with individual defendants, early legal advice is essential, since once investigating authorities become aware of an allegation, the decision whether to pursue criminal proceedings rests with the public prosecutor rather than the company.
Subsidy and Bank Fraud Risks for Companies
Subsidy fraud under Section 264 StGB and bank or credit fraud under Section 265b StGB, both discussed above, are among the most common fraud risks facing businesses in Germany, particularly companies that have applied for state aid, EU funding, or bank financing. Allegations frequently arise from incomplete or inaccurate financial disclosures submitted with an application. Notably, subsidy fraud does not always require intent. Under Section 264(5) StGB, grossly careless conduct, such as failing to recognize restrictions on how a subsidy may be used, can also result in criminal liability. A conviction carrying a custodial sentence of at least one year can further disqualify a managing director or board member from holding that position for five years under German company law, making early legal advice important not only for the company but for the individuals responsible for its management.
CEO Fraud
CEO fraud is a distinct and increasingly common scheme in which a fraudster impersonates a company executive, often through a convincingly falsified email or a compromised executive email account, to pressure an employee with financial authority into transferring company funds abroad. These schemes frequently apply psychological pressure through urgency and secrecy, and the perpetrators are often well informed about the company’s structure and personnel. If your company has fallen victim to CEO fraud, our lawyers can assess your legal options and assist in pursuing recovery. Separately, an employee who authorizes such a transfer without proper authority may face civil liability and potential exposure under German breach of trust law, which is a different situation our lawyers can also advise on.
How We Support Businesses
Our lawyers defend companies facing fraud allegations, pursue out-of-court resolutions where litigation would risk reputational harm, and represent companies that have themselves been the victim of fraud. We also provide preventive advice on internal controls to help reduce fraud risk before it materializes.
For fraud allegations involving computer systems, investment products, subsidies, or embezzlement specifically, our lawyers provide dedicated advice on computer fraud, investment fraud, subsidy fraud, and embezzlement in Germany. For a broader overview of business-related fraud risks in Germany, see our page on corporate fraud in Germany.
Speak to Our Criminal Defense Team
A fraud allegation, whether directed at you personally or at your business, rarely allows time to prepare. Acting early, before a statement is made or a strategy is settled, often has the greatest influence on how a case unfolds. Our criminal defense lawyers at Schlun & Elseven Rechtsanwälte advise clients across Germany and internationally, by video call as well as in person, and can review your situation and outline your options without delay.
Have your situation reviewed by an experienced criminal defense lawyer. We will assess the facts, explain your rights, and help you decide on the right next step.
Frequently Asked Questions about Fraud in Germany
Fraud in Germany is regulated under Section 263 of the German Criminal Code (Strafgesetzbuch, StGB). It involves intentionally deceiving another person to obtain a financial advantage, thereby causing damage to that person’s assets.
Simple fraud is punishable by a fine or imprisonment of up to five years. Particularly severe cases carry a sentence of six months to ten years. An attempt to commit fraud is also punishable.
Yes. Fraud is an Offizialdelikt, meaning it is prosecuted by the state on its own initiative. Prosecutors can continue proceedings even if the alleged victim withdraws their complaint, although a resolution with the victim can improve the prospects of the case being discontinued or a more lenient outcome being reached.
In many cases, yes. An out-of-court resolution can help avoid a lengthy, costly trial and negative publicity. Which approach is appropriate depends on the specific circumstances of the case and should be discussed with an experienced criminal defense lawyer.
A fraud allegation connected to an immigration or citizenship application, such as the use of a fake language certificate, can lead to revocation of citizenship or the refusal of a residence permit application, in addition to any criminal penalty. Our lawyers advise on both the criminal and immigration dimensions of these cases.
Subsidy fraud can arise even without intent, since grossly careless conduct in applying for or using a subsidy can also result in criminal liability. A conviction can also have personal consequences for managing directors and board members, including disqualification from those positions.
Our criminal defense lawyers review the facts and evidence of your case, explain your rights and procedural options, and develop a defense strategy tailored to your circumstances, whether that involves negotiating an out-of-court resolution, defending you at trial, or advising on related issues such as asset freezes and extradition matters.
Yes. Communications with our lawyers are protected by attorney-client privilege, and we handle every case with strict discretion. This is particularly important in fraud matters, where the reputational impact of an allegation, for an individual or a business, can be as significant as the legal outcome itself.
Practice Group: Our German Criminal Defense Lawyers
Practice Group:
Our German Criminal Defense Lawyers
Contact Schlun & Elseven Rechtsanwälte
Please use our online form to outline your request to us. After receiving your request, we will make a brief initial assessment based on the facts described and provide you with a cost offer. You can then decide whether you would like to engage our services.
