US treasury department launches whistleblower program offering up to 30% rewards for fraud tips

Treasury Secretary Scott Bessent said the initiative is designed to encourage individuals to report financial misconduct.

The U.S. Treasury Department has launched a new whistleblower program aimed at cracking down on fraud and recovering potentially billions in stolen taxpayer funds, officials announced this week.

Treasury Secretary Scott Bessent said the initiative is designed to encourage individuals to report financial misconduct by offering significant financial rewards. The program will be administered by the Financial Crimes Enforcement Network (FinCEN), which focuses on combating money laundering and financial crimes.

Under the new system, whistleblowers could receive between 10% and 30% of any funds successfully recovered as a result of their tips. The program targets a wide range of financial crimes, including fraud involving Medicare and Medicaid, misuse of government relief funds, COVID-era assistance programs, sanctions violations, and breaches of the Bank Secrecy Act.

Officials say the effort could help recoup “hundreds of billions of dollars” lost to fraud. Bessent likened the initiative to a “see something, say something” approach, urging the public to report suspicious activity through an online submission system. According to early figures, the Treasury has already received hundreds of tips since the program’s rollout.

The whistleblower program is part of a broader push by the administration to combat financial crime, including the creation of a federal task force focused on eliminating fraud. That effort has been associated with Vice President JD Vance, who has backed initiatives to strengthen oversight of federal spending.

Supporters say the financial incentives could motivate insiders to come forward with information that would otherwise remain hidden. Scott Walter, president of the Capital Research Center, noted that offering a percentage of recovered funds creates a strong incentive structure, particularly in complex fraud schemes where insiders may have critical knowledge.

However, experts also point to potential challenges. Transparency varies widely across states and agencies, which could make it harder to detect and prove wrongdoing in certain cases. Critics also warn that the program could face scrutiny from lawmakers already investigating Treasury operations and oversight practices.

Despite those concerns, officials argue the initiative is a necessary step to protect taxpayer dollars and hold bad actors accountable. If successful, the program could significantly expand the government’s ability to identify and recover funds lost to fraud.