Study Data from Federal Reserve Bank Provide New Insights into Investment (Whistleblowers and Financial Fraud): Investment

2026 JAN 29 (NewsRx) -- By a News Reporter-Staff News Editor at NewsRx Policy and Law Daily -- Investigators discuss new findings in Investment. According to news reporting originating from Atlanta, Georgia, by NewsRx editors, the research stated, “Whistleblowers who report financial crimes are treated differently than whistleblowers in other sectors.”

Our news editors obtained a quote from the research from Federal Reserve Bank, “This is because of the potential for partial recovery of the loss caused by financial fraud. The paper shows that the optimal whistleblower reward is a fraction of the amount that is recovered from fraud loss, which is capped at the level that can no longer attract additional whistleblowers.”

According to the news editors, the research concluded: “The paper also analyzes how rewards to whistleblowers affect heterogeneous potential fraudsters’ decision to commit fraud and why additional penalties in the form of monetary fines and/or jail time are needed.”

This research has been peer-reviewed.

For more information on this research see: Whistleblowers and Financial Fraud. Journal of Financial Stability, 2026;82. Journal of Financial Stability can be contacted at: Elsevier Science Inc, Ste 800, 230 Park Ave, New York, NY 10169, USA. (Elsevier - www.elsevier.com; Journal of Financial Stability - http://www.journals.elsevier.com/journal-of-financial-stability/)

The news editors report that additional information may be obtained by contacting Oz Shy, Federal Reserve Bank, Atlanta, GA, United States.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1016/j.jfs.2025.101494. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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