Question Summary:
I feel that I have put false information to get extra money from the government.

Question Detail:

 
I know someone who feels they exaggerated their illness on a government form, this person felt pressured by people they were living with and this person feels they were dishonest in acquiring the benefit.
Now although this person would like to resolve this issue, the problem is that this non-Muslim government is involved with air strikes in Muslim countries and so this person feels like they shouldn't return the money anonymously and that instead wants to know whether they should give it to charity instead or pay it back to the government anyway regardless.
Also this person has also stolen virtual property on different haraam games in the past and wants to know how they can pay back what was stolen in cash worth, but they do not know who the people were as it was on the internet.

Answer :

In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
It is encouraging to note that your friend is very self conscious about making decisions that may not concur with the laws of Sharī`ah. May Allāh Ta`ālā keep him steadfast in his Dīnī endeavors. Āmīn.
(1) It is not feasible to falsify information in order to gain extra benefits from the government. Not only is this an act of deceit, but it is also means endangering oneself in case one is prosecuted by the relevant authorities for committing fraud through misrepresentation for the purpose of gaining extra benefits.[1]
In order to dispose of the money, you may either use these funds to offset governmental taxes[2] or give this money in sadaqah to the poor.[3]
(2) We are unable to understand what you exactly mean by “virtual property” and “haraam games”; however, as a general principle, if the person in question is unable to return the monies to its respective owners, then he should dispose such money by giving it in sadaqah to the poor.[4]
Before we conclude, we would like to mention that committing fraud and cheating in order to usurp the wealth of others is highly frowned upon by Sharī`ah. As such, we advise him to make tawbah and istighfār for committing such acts as well.
And Allah Ta’āla Knows Best
Bilal Mohammad
Student Darul Iftaa
New Jersey, USA 
Checked and Approved by,
Mufti Ebrahim Desai.
www.daruliftaa.net