According to the Association of Certified Fraud Examiner’s 2014 Report to the Nations, more than 40 percent of all fraud cases are detected by tips, and half of those tips come from employees. In the years since the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the focus on whistleblowers has become intense. With the establishment of a whistleblower hotline and the opportunity to reap a substantial reward if a tip results in sanctions, the stage is set for a huge increase in whistleblower activity.
Jeff Windham, general counsel and senior forensic analyst for Forensic Strategic Solutions, Inc., believes that one element in particular has given potential whistleblowers the confidence to phone in their tips. “Confidentiality. That is usually the biggest concern that I hear,” he says. When people contact Windham, they first ask about confidentiality and never give their names. “We now refer them directly to the fraud hotline at the SEC (Securities and Exchange Commission), thanks to the confidentiality provisions.”