Police are investigating widespread fraud involving claims for housing and other benefits by Bulgarian gangs in the Netherlands, RTL news reported at the weekend.

The broadcaster says the confidential investigation has shown gangs are sending foreign nationals to Rotterdam to write non-existing people into council registers and then claim housing and healthcare benefits on their behalf.

In one case, a Bulgarian suspect was planning to hire buses to send as many people as possible to the Netherlands to sign up for benefits, RTL said.

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RTL says the fraudsters register at Rotterdam city council with their ID and a fake rental contract. They are then given an official number (bsn) which they hand over to the gang and then return to Bulgaria.

The gang can then use this number to apply for backdated health and housing benefits which can net them €6,000 to €8,000 per person. The tax office pays out the cash immediately and only checks up on the legitimacey of claims afterwards, RTL says.

In a reaction, junior finance minister Frans Weekers said it is ‘uncceptable the Dutch tax system is being used as a cashpoint machine.

’The claims will be thoroughly investigated and the loopholes closed’, he said. ‘We are doing all we can to combat fraud but this is obviously not enough,’ he said.

The Netherlands is one of four EU countries campaigning for tougher rules to combat benefit tourism.