SFO whistleblower rewards: lawyers warn of “moral hazard” – what the consultation means for fraud prevention
The government’s proposal to pay whistleblowers raises questions about juries, corporate trust and the role of proactive fraud prevention.
Gena Ritchie, Solicitor in our Commercial Litigation team, has been quoted in the media on the news that the government has launched a consultation on reforming whistleblowing laws, including giving the Serious Fraud Office (SFO) powers to reward individuals who report economic crime.
The consultation follows a review by Jonathan Fisher KC and covers eligibility, reward caps and whether to criminalise false reports or the harassment of whistleblowers. It opened on Monday and closes on 8 January 2027. Lawyers quoted in the article raised concerns about how a whistleblower’s financial motives would be viewed by juries, the moral implications, and the potential damage to internal corporate governance.
Gena commented that whistleblowing plays an important role in tackling fraud, but that if a reward scheme does not run alongside proactive internal fraud prevention, it risks creating “distrust within an organisation”.
She added: “It is however important to ensure that any scheme introduced in the UK complements, rather than replaces, proactive fraud prevention measures.”
Read Gena’s comments in the media:
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