Fraud on the Government
Billions of tax dollars are lost each year through fraudulent Medicaid, defense contracts, and other means. Congress has decided that the best method of dealing with the enormity of the problem is to compensate whistleblowers who reveal the fraud. Some states (like California) have similar laws. Oregon and Washington provide some protection of whistleblowers.[1]
Whistleblower Law
The federal government's False Claims Act provides for compensation for whistleblowers. The traditional name for cases which attempt to recover money defrauded from the king is Qui Tam litigation. Qui Tam is pronounced "kee tam" or "kway tam") and is an abbreviation from the Latin "qui tam pro domino rege quam pro sic ipso in hoc parte sequitur" meaning "who as well for the king as for himself sues in this matter."
The federal False Claims Act provides generous financial incentive to help the government root out fraud. In 1986, the False Claims Act was strengthened to provide significant compensation to whistleblowers that successfully assist in claims of fraud against the federal government. It protects employee whistleblowers.
[1] ORS 659A.885 protects whistleblowers in discrimination cases. RCW 70.124.100 protects against retaliation by state and local authorities.