When the U.S. government is being defrauded by a company, organization, or individual, a person who becomes aware of the fraud can "blow the whistle," alerting the federal government of the fraud. Such an individual is known as a "whistleblower," and he or she has the right under the federal False Claims Act to bring a civil lawsuit on the federal government's behalf against the perpetrator of the fraud.

Under the False Claims Act, an individual who exposes fraud against the government by filing a lawsuit on the government’s behalf may be entitled to a portion—between 15 and 25 percent—of any recovered monies.

Fraud Against the Government is Prevalent
The government has been scammed many, many times, particularly by defense contractors. The huge increase in defense spending during President Reagan's administration brought about reports of the U.S. military paying $300 for a single hammer and $500 each for toilet seats.

This type of fraud against the government was attacked by stepped-up provisions of the False Claims Act during the 1980s, but fraudsters still manage to find ways to exploit the U.S. government.

Common Cases of Fraud Against the Government
The U.S. government is especially susceptible to the following types of fraud:

Contractor fraud
Medicare/Medicaid fraud
Grant fraud, including grants for education and conservation programs
Construction and shipbuilding fraud
Energy and/or utilities fraud
Fraud involving government entities such as the U.S. postal service, the Food and Drug Administration, the U.S. Department of Agriculture, the U.S. Department of Housing and Urban Development, and others