The False Claims Act is a federal law that helps combat fraud against the government. It allows individuals, known as whistleblowers, to report companies or people who are cheating the government, often by submitting false claims for payment. If the government wins the case, the whistleblower can receive a portion of the recovered funds as a reward.
This law is crucial for protecting taxpayer money and ensuring that government programs, like those related to healthcare or defense, are not exploited. By encouraging reporting of fraud, the False Claims Act plays a vital role in maintaining integrity within government spending and services.