What financial incentive does the False Claims Act provide?

The False Claims Act includes a provision that offers substantial financial incentives to private citizens who come forward with information about fraud against government programs or contracts, commonly referred to as a "qui tam" action. This means that individuals—often whistleblowers—who report fraudulent activities not only help protect government funds but can also receive a percentage of the recovered funds as a reward for their efforts. This financial motivation is designed to encourage more people to report wrongdoing that they may witness, thereby increasing accountability and compliance within federal programs. The potential monetary reward serves as a powerful incentive for individuals to take the risk of reporting misconduct, often in situations where they may fear retaliation from their employers or others involved in the fraudulent activity.