In today’s digital era, where cybercrime is on the rise, the way financial misconduct is uncovered and prosecuted is evolving rapidly. Whistleblowers are increasingly essential in exposing complex frauds and regulatory violations—often serving as the only gateway to critical insider intelligence. For the U.S. Securities and Exchange Commission (SEC), whistleblowers play a pivotal role in enforcing securities laws and uncovering hidden misconduct.
Under a program authorized by Congress, the SEC offers financial incentives to individuals who provide original, high-quality information that leads to successful enforcement actions with monetary penalties exceeding $1 million.
Inside the SEC Whistleblower Program
The SEC’s program grants awards between 10% and 30% of the total monetary sanctions collected in qualifying cases. Just in April 2020, the SEC awarded $52 million across four whistleblower cases:
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April 28: Over $18 million awarded
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April 20: $5 million award issued
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April 16: More than $27 million awarded
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April 3: Approximately $2 million paid out
Since the program’s inception in 2012, the SEC has granted roughly $448 million to 81 individuals. These awards are funded entirely through penalties paid by wrongdoers to the SEC, via a dedicated investor protection fund. Importantly, these payouts do not reduce compensation available to harmed investors.
FinTelegram’s Commitment to Whistleblowers
At FinTelegram, we rely heavily on tips and information from whistleblowers—whether they are former employees, business partners, or victims of scams and fraudulent networks. Most submissions are anonymous, but they’ve proven instrumental in our investigations. We collaborate with law enforcement across multiple jurisdictions and have access to a growing portfolio of ongoing cases.
Together with the European Funds Recovery Initiative (EFRI), which we co-founded, FinTelegram is preparing to launch a fund dedicated to compensating victims of cybercrime and recognizing the crucial contributions of whistleblowers. This initiative, supported by authorities and private partners, is expected to launch by the end of June 2020.
Stay with us for more updates on this upcoming program. The fight against cybercrime starts with truth—and whistleblowers are leading the charge.