Whistleblowers Are the Best Method to Catch Fraud
Whistleblowers are the top method for identifying waste, fraud, and abuse in government and in the private sector, according to the Association of Certified Fraud Examiners’ Global Fraud Study. The group estimates the government caught 40% of misspending due to tips from whistleblowers. This number is far larger than any other source of uncovering fraud.
Global Fraud Study
Association of Certified Fraud Examiners (ACFE) is the world’s largest anti-fraud organization. They also provide anti-fraud training and education. Every few years, they release a study examining the fraud cases in a given time period. This report contains an analysis of 2,410 cases of occupational fraud that the government investigated between January 2014 and October 2015.
They found sound interesting statistics:
- The typical organization loses 5% of its revenues in a given year as a result of fraud.
- The median loss for all cases was $150,000.
- The most common form of fraud is asset misappropriation.
- Billing schemes and check tampering posed the greatest risk.
- The median duration of fraud was 18 months.
- Organizations that had reporting hotlines were much more likely to detect fraud through tips than organizations without hotlines (45.3% compared to 28.2%, respectively)
- The most prominent organizational weakness that contributed to the frauds in our study was a lack of internal controls.
- Researchers noticed the higher the perpetrator’s level of authority, the larger the size of the fraud.
Whistleblowers Instrumental in Catching Fraud
In the study, they found that whistleblowers caught almost half of all fraud. Plus, over 20% reported the fraud to their direct supervisor. These tips can come in a variety of ways: hotline, email, online form and even a mailed letter. The main point is that the government needs these tips to keep coming. This is why they reward whistleblowers. Several laws provide whistleblowers with financial rewards when they submit information that helps the government recover funds from companies or individuals committing fraud. Whistleblowers could receive up to 30% of recovered assets.
Over the past 30 years, the U.S. authorities have paid hundreds of millions in total awards, with an average payout of approximately $1.5 million. However, this number can be upwards of $100 million. The number of cases settled in the last ten years increased, too.
Become a Whistleblower
The Michael Brady Lynch Firm has successfully represented thousands of consumers and recovered millions of dollars for their clients. Our team of attorneys has been recognized as some of the most experienced and successful in the country. Our award-winning staff is also sought after for our knowledge on complex litigation, scientific evidence development, negotiation strategies and trial tactics.
Most of all, our law office is resourceful and dedicated to pursuing any compensation you are due. Because of this, we have received a high degree of peer recognition and professional achievement, such as inclusion on numerous Plaintiff Steering Committees. We will take whatever legal measures are necessary when fighting for your rights to damages.
Therefore, if you believe you have uncovered evidence of fraud involving a government-funded program, contact us today. Our attorneys have represented many clients in the past with complex cases. We will work tirelessly to obtain results on your behalf.