The budget

Illegal supply of workers and forced labour, Gdf uncovers maxi-fraud worth 1 billion

774 persons were charged and 12,000 undeclared workers and 16,000 illegal workers were detected. Seized 186 million. 128 corporals and 1,224 victims discovered. The wage dumping 'system': unfair competition with lowered labour costs

by Pietro Menzani

29 May 2026

3' min read

Translated by AI

Versione italiana

3' min read

Translated by AI

Versione italiana

The illicit supply of labour is worth EUR 980 million. The 2025 snapshot of the Guardia Finanza sheds light on an intricate multi-level tax fraud system. An opaque business that has led the Guardia Finanza to denounce 774 people - about ten have been arrested - and to seize EUR 186 million. Twelve thousand undeclared workers and 16 thousand irregular workers were identified. A total of 128 were reported for hiring, while five ended up in handcuffs. There were 1,224 victims of labour exploitation. In addition, 64 were reported for aiding and abetting the illegal status of foreigners and 225 for employers' employment of foreigners without residence permits.

The Gdf action

The activities of the Guardia di Finanza in the course of 2025 developed along two lines: on the one hand, they targeted undeclared work - an expression used to refer to completely undeclared employment relationships - and on the other, irregular work, i.e. situations characterised by only apparent formal regularity, behind which are concealed economic and contractual conditions that differ from those officially declared.

As the Fiamme gialle explain, systematic intervention in this area not only suppresses violations, but also intercepts broader circuits of economic illegality that damage state coffers, distort competition and jeopardise respect for workers' rights.

Varese, operazione della Gdf contro il lavoro nero in bar e negozi

Illegal outsourcing of labour

The action of the Gdf focused with particular attention on the phenomena of illegal labour supply. This practice is mainly carried out through the use of 'reservoir' companies that artificially lower labour costs through the non-payment of taxes and contributions. The result is the distortion of the market.

Illicit labour interposition also encourages forms of wage dumping - lowering labour costs to compete unfairly - and forces the workers involved into highly precarious conditions.

In this context, one of the most important operations of the past year was the one carried out by the Milan Nucleo di Polizia economico-finanziaria in January 2025. Investigating the crime hypothesis of fraudulent declaration through the use of false invoices, on that occasion a preventive seizure of EUR 46 million was carried out against a company belonging to a group operating in the transport and shipping sector. According to the reconstruction by the police, the company in question from 2022 to 2023 had used invoices for non-existent transactions issued by its service contractors. The objectives were to reduce tax and social security costs and to benefit from the tax savings resulting from the illegal deduction of VAT.

In September 2025, a preventive seizure was carried out in Turin against nine natural persons and 10 legal entities for a total of EUR 26.5 million. Once again, the companies involved - two separate Turin-based corporate groups active in the logistics sector - were involved in the illicit supply of labour disguised through fictitious service contracts. Between 2018 and 2023, the total value of invoices for non-existent transactions exchanged between the various companies exceeded 100 million.

Finally, in February last year, the Economic and Financial Police Unit of Reggio Emilia dismantled a criminal conspiracy aimed at committing tax fraud that involved 179 suspects, 400 companies - 40 of which were fictitious - and the external assistance of 20 professionals in the accounting and notary fields. The Finance Police carried out a preventive seizure of EUR 70 million.

Exploitation of workers

In the area of forced labour, in October 2025, following the report of a worker, the Guardia di finanza of Biella concluded a complex investigation that centred on the exploitation of foreign workers, culpable personal injuries aggravated by the violation of labour accident prevention regulations and unauthorised subcontracting.

The worker, after being the victim of an accident at work, had denounced the conditions he was subjected to. The criminal offence alleged by the police is 'caporalato' (forced labour), since, according to reconstructions, several foreign citizens with a regular residence permit were forced to work excessively long shifts without adequate breaks, holidays and days off, all in precarious hygienic conditions and performing dangerous tasks without the appropriate equipment.

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