People who work with or within an organization, like employees or clients, who have inside knowledge about fraud and misconduct often choose to become whistleblowers. They do so not just because it is the right thing to do but because they know that the United States has powerful whistleblower laws that will help protect and reward them.
The strongest protection a whistleblower can have is anonymity. The federal government, and especially the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), have specific confidentiality provisions to protect whistleblower identities. Filing a report with a government body or through a qui tam lawyer typically grants some level of confidentiality to the whistleblower.
Anyone who plans to take action against fraud must understand the full whistleblower journey, including how their anonymity will be protected and how to avoid compromising their position as their claim advances.
Does a Whistleblower Have the Right to Remain Anonymous?
Most whistleblowers are concerned about protecting their identity because of the potential for workplace retaliation. Many whistleblower laws grant confidentiality protections so that individuals who file claims or qui tam lawsuits can remain anonymous. While every effort is made to maintain a whistleblower's anonymity under these laws, some circumstances may cause their identity to be revealed. For instance, in a court proceeding, a government agency like the SEC may be required to share documents that contain personally identifiable information.
The Dodd-Frank Act
The Dodd-Frank Act is a series of federal regulations passed in 2010 to prevent future financial crises. The Dodd-Frank Act created the CFTC. This program now provides financial rewards to whistleblowers who report potential violations of the Commodity Exchange Act, which regulates futures and commodities trading. The Dodd-Frank Act also offers anti-retaliation protections for people who inform the government about fraudulent activities.
The False Claims Act
The False Claims Act (FCA) includes a seal provision that preserves a whistleblower's identity when a qui tam case is filed. Only the government and the whistleblower's attorney know the whistleblower's identity and the details of the allegations. The information is kept confidential during the investigation so as not to clue the defendant or the public about the accusations.
Internal Revenue Service
The Internal Revenue Service (IRS) typically looks for certain red flags of tax fraud, including missing income, excessive deductions or credits, and unreported income. However, there are cases in which fraud is more difficult to detect. The IRS works with whistleblowers when they have credible evidence regarding a person or company that is avoiding or underpaying taxes or otherwise defrauding the government. Under IRC § 7623, whistleblowers are entitled to compensation if the IRS takes action based on the whistleblower's allegations. Whistleblowers can report tax fraud anonymously through the IRS, but they may not be eligible for a reward.
Can You Report Someone at Work Anonymously?
Reporting unethical behavior at work is the right course of action. Some organizations may have a process for doing so anonymously. However, an employer might only be able to keep the whistleblower anonymous to a certain degree or may not be able to pursue the situation further without their testimony. The best way for an employee to protect their identity is to file a report through a qui tam law firm, as there are strong confidentiality protections thanks to the numerous laws in place.
Advantages and Disadvantages of Anonymous Whistleblowing
Anonymity encourages whistleblowers to report fraud, waste, or abuse while avoiding the many drawbacks that could arise from coming forward publicly. For example, a whistleblower who chooses to identify themselves may face impacts on their personal and professional life, such as defamation suits or threats.
There are, however, some disadvantages to remaining anonymous that whistleblowers should consider when filing a claim or qui tam lawsuit. Anonymous reports make it harder for authorities to do their job and effectively prosecute the allegations. They might have too many information gaps, and there may not be a case if officials cannot speak with the whistleblower directly to fill the holes in the story.
How to Be an Anonymous Whistleblower
Whistleblowers who wish to remain anonymous should work with a qui tam attorney, who can ensure their claim is filed under a law that grants them confidentiality protection. It is important to note that total anonymity may not be guaranteed. A whistleblower may be indirectly identified through various documents and information shared during a case, or they may need to identify themselves to help further the case.
Can a Whistleblower Remain Anonymous?: FAQs
Can Whistleblowing Be Done Anonymously?
Filing a claim under laws like the FCA and Dodd-Frank Act will grant the whistleblower strong anonymity protections while the government investigates the case. Under the FCA, the whistleblower may lose their anonymity after the case becomes "unsealed", which can happen when the government either intervenes or declines to intervene in the case. Identity disclosure under the Dodd-Frank Act, however, isn't automatically tied to government intervention like it is with FCA cases.
Are Federal Whistleblowers Entitled to Anonymity?
Federal employees who become whistleblowers are entitled to anonymity under the Inspector General Act of 1978 (IGA). This Act states that the whistleblower's identity must be protected unless the employee consents to disclosing their identity. It also prohibits retaliation based upon whistleblowers' disclosures to the Office of the Inspector General (OIG), similar to non-federal employees.
Can You Remain Anonymous if You Report to the News Media?
Many whistleblowers believe the media can help further their mission and promote justice, but the impact of the press is not always positive. Under these circumstances, there is no guarantee the whistleblower will remain anonymous. In addition, leaking a story could weaken a whistleblower's case, as most whistleblower programs will only reward those who bring forward information that is not yet public.
Should Whistleblowers Be Anonymous?
Whistleblowers are not required to remain anonymous and may choose to make their identity public. Most whistleblowers opt to protect their identity to avoid the potential for harassment and other negative effects on their personal and professional lives. Ultimately, whistleblowers themselves should decide whether they wish to remain anonymous.
Have More Questions About Your Rights?
Whistleblowers may be fearful or unsure how to proceed with the information they have uncovered. A whistleblower lawyer can assess your situation and discuss whether to file a qui tam lawsuit and pursue a case on behalf of the government. An experienced qui tam lawyer will support you in making a decision you can feel confident in. Remember, the first step is always the hardest, but in the long run, it may be worthwhile.
