EU steps up the fight against fraud to better protect taxpayers’ money

The European Commission today published its 2025 Annual Report on the Protection of the European Union’s Financial Interests (PIF Report), introducing for the first time a comprehensive assessment of the entire anti-fraud cycle and setting out the next steps to strengthen the protection of the EU budget against fraud and corruption.

The report marks a significant evolution in how the European Union measures its efforts to safeguard public funds. Rather than focusing primarily on fraud detection, it assesses every stage of the anti-fraud cycle, from prevention and early detection to investigation, prosecution, recovery and reporting. By bringing together information from the European Commission, Member States, OLAF and the European Public Prosecutor’s Office (EPPO), the report provides the most comprehensive overview to date of how the EU protects taxpayers’ money.

The report also outlines the Commission’s plans to modernise the EU’s anti-fraud architecture ahead of the next Multiannual Financial Framework. Proposed reforms include mandatory national anti-fraud strategies, stronger reporting obligations for Member States and a review of the legislative framework governing the EU’s anti-fraud bodies to ensure they remain fit for increasingly sophisticated fraud threats.

“Every euro lost to fraud is a euro stolen from European taxpayers. This report shows how the Union is strengthening every stage of the fight against fraud, from prevention to recovery, while preparing its anti-fraud system for future challenges. We are committed to transparency to better protect EU funds. The 2025 report is a step in the right direction.” – Piotr Serafin, Commissioner for Budget, Anti-Fraud and Public Administration.

The report highlights significant progress in prevention, where investment in early detection, information sharing, exclusion mechanisms and capacity building has enabled authorities to identify suspicious activity before EU funds are lost. This preventive approach reduces financial losses and limits the need for lengthy recovery procedures.

In 2025, a total of 13,010 irregularities were recorded, amounting to €2.1 billion. Of these, 986 were classified as fraudulent irregularities, involving €274.3 million. Compared with 2024, the total number of reported irregularities decreased by 7.6%, while the amounts involved increased by 12.8%.

To strengthen detection further, the Commission recommends greater use of risk analysis and IT tools such as Arachne+. The report also underlines the importance of systematically referring suspected fraud cases to prosecution services and reporting them to the Commission in a timely manner.

Over the last ten years, OLAF and the Commission’s combined efforts have prevented more than €658 million from being unduly spent. The report also identifies areas where further progress is needed: investigations remain lengthy and complex, while stronger coordination between administrative, investigative and judicial authorities is essential to improve the recovery of fraudulently obtained EU funds.

Looking ahead, the report will help shape the ongoing review of the EU’s anti-fraud architecture, with a Commission Communication expected in 2026 that could lead to legislative proposals strengthening cooperation between OLAF, the EPPO and other key actors involved in protecting the Union’s financial interests.

The report also includes a table outlining amounts recovered over the past decade with follow-up completed, thanks to OLAF’s financial recommendations, showing recovery rates of over 96%: for revenue, 600 recommendations resulted in €4,178.5 million recommended for recovery, with €4,534.5 million recovered (a 96% recovery rate); for expenditure, 569 recommendations resulted in €1,129.7 million recommended for recovery, with €824.9 million recovered (also a 96% recovery rate).

The most recurrent examples of fraud in relation to EU funds are linked to the falsification of supporting documents, such as invoices, the fulfilment of entitlement criteria, and incorrect declaration of value. Among the non-fraudulent irregularities, the most recurrent were misdeclaration of goods in customs and infringement of public procurement rules in cohesion policy.

OLAF’s mission is to detect, investigate and stop wrongdoings related to EU funds. It fulfils its mission by carrying out independent investigations into fraud and corruption involving EU funds, contributing to strengthening citizens’ trust in the EU Institutions by investigating serious misconduct by EU staff and members of the EU Institutions, and developing a sound EU anti-fraud policy.

Author Credit: https://anti-fraud.ec.europa.eu/media-corner/news/eu-steps-fight-against-fraud-better-protect-taxpayers-money-2026-07-28_en