Fraud in the workplace threatens not only the financial stability of an organization but also the integrity of its culture, trust among its employees and, more broadly, the protection of investors.

But corporate fraud is a harsh and pervasive reality. According to the 2023 Global Business Ethics Survey published by the Ethics & Compliance Initiative, observed misconduct in the workplace is at an all-time high. Nearly two-thirds of employees surveyed said they had witnessed at least one workplace violation in the previous 12 months, up from 60% in 2020.

What’s an employee to do? There are numerous government programs that protect and reward whistleblowers. But it can be tricky terrain, and sometimes anonymous reporting is the best way to do the right thing while avoiding retaliation.

The following steps outline a suggested course of action for employees who observe wrongdoing, behaviors ranging from financial misconduct, regulatory violations, or fraud against the government, among others.

1. Take a Moment & Take Notes

While an employee’s instinct may be to act swiftly, better to pause. Reacting too quickly can jeopardize legal protections and an employee’s job. Further, not all unusual behavior constitutes wrongdoing, so the employee must avoid jumping to conclusions. Instead, take contemporaneous notes that chronicle dates, alleged misbehaviors and involved parties. This documentation is crucial to assess the scope of misconduct and, ultimately, the credibility of a whistleblower.

2. Learn Your Rights

Recognizing the crucial role whistleblowers play in detecting and deterring wrongdoing, federal and state governments have devised a variety of robust programs to protect and reward whistleblowers, including:

• The SEC Whistleblower Program provides significant financial rewards (10–30% of sanctions over $1 million) and robust anti-retaliation protections for individuals who report securities violations such as insider trading, market manipulation, Ponzi schemes and accounting fraud. Critically, SEC whistleblowers who work through an attorney can file their submission anonymously. One of the strongest tools in the enforcement arsenal, to date, the program has awarded whistleblowers more than $2.2 billion.
• The Sarbanes-Oxley Act (SOX) protects employees of publicly traded companies who report violations of the federal securities laws. It prohibits retaliation and allows whistleblowers to file complaints with OSHA within 180 days of retaliatory action.
• On the books since the Civil War, the False Claims Act (FCA) is a law designed to combat fraud against the U.S. government, allowing for civil lawsuits against individuals or organizations that submit false claims for payment.The law enables private citizens to file lawsuits on behalf of the government and whistleblowers may receive a substantial percentage of the recovered funds. Illustratively, in FY2024 alone, the government recovered nearly $3 billion through the FCA.

3. Gather Evidence—But Carefully and Legally

Documentation is often key to a successful whistleblower claim. Emails, reports, spreadsheets, and internal communications can help corroborate whistleblowers’ allegations. However, this is an area rife with serious exposure. Taking documents without authorization can expose you to legal risk. Focus on collecting only what you have lawful access to and avoid removing privileged or confidential materials. An attorney can help you determine what’s appropriate to retain.

4. Consider Consulting an Attorney

The risks, rewards and regulations surrounding whistleblowing are complex and ever-changing. Should you report misconduct to a superior? Should you file a tip with the government? Is the suspected wrongdoing actually illegal? Is there a finite window to report to the government? Complex questions abound and the answers vary from case to case. Whistleblower attorneys can help make sense of these myriad issues, evaluate the strength of a claim, identify possible monetary awards, and advise on steps to protect against retaliation. And, with many whistleblower programs, retaining an attorney is the only way to file anonymously.

Blowing the whistle is a courageous act—but it doesn’t have to be a solitary one. At Outten & Golden, we’ve helped whistleblowers across industries navigate the legal process, protect their careers, and hold wrongdoers accountable. If you’ve witnessed fraud and are unsure what to do next, call us. We’re here to help you take the next step—safely, strategically, and with confidence.