Whistleblower rewards, false reports, and corporate fraud
by Paolo Buccirossi, Giovanni Immordino, Giancarlo Spagnolo, VoxEu.org
Schemes that reward whistleblowers who provide evidence of corporate fraud have been effective in the US, but have generally been resisted in Europe. This column argues that a policy that trades off rewards to those who blow the whistle against punishment for fabricating evidence would increase both detection of, and punishment for, fraud. This will only be effective, however, if whistleblowers are protected from retaliation and the policy also invests in making court findings more accurate.