The Newshound

UK launches consultation on paying whistleblowers to expose fraud and bribery, but lawyers warn of 'moral hazard'

UK citizens are the second-largest group of foreign nationals using the US Securities and Exchange Commission's whistleblower reward scheme, a finding that prompted the Serious Fraud Office to develop its own reward…
UK citizens are the second-largest group of foreign nationals using the US Securities and Exchange Commission's whistleblower reward scheme, a finding that prompted the Serious Fraud Office to develop its own reward…

The UK government has opened a public consultation on rewarding whistleblowers who report economic crimes including fraud and bribery, with payments to be funded from fines levied on convicted companies. The Serious Fraud Office is developing the reward mechanism after a July 2026 review by Jonathan Fisher KC found Britain is haemorrhaging valuable intelligence because tipsters turn to US authorities where financial rewards already exist. The consultation closes on 8 January 2027.

A July 2026 review found that UK citizens rank second among foreign nationals making use of the US Securities and Exchange Commission's whistleblower reward scheme.

Lawyers warn financial motives could poison jury trials and undermine trust inside organisations, with one warning of 'distrust within an organisation' if the scheme replaces internal fraud prevention rather than complementing it.

MoreReutersUK proposes rewards for whistleblowers who report economic crimes - ReutersUA.NEWSBritain discusses rewards for fraud and bribery whistleblowers — TimesLIVE - UA.NEWSwww.vwv.co.ukSFO whistleblower rewards: lawyers warn of “moral hazard” – what the consultation means for fraud prevention - www.vwv.co.ukStep.orgUK SFO consults on cash rewards for economic crime whistleblowers - Step.org
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