The federal false claims act is widely regarded as the most effective tool in combating fraud against the federal government congress enacted the federal false claims act during the civil war to combat fraud against the federal government by suppliers to the union army. The false claims act the department of justice is authorized to pay rewards to those who report fraud against the federal government and are not convicted of a crime related to the fraud individual states in the us have different laws regarding whistleblowing involving state governments. Home in the news false claims act consumers tool to combat fraud against the government false claims act consumers tool to combat fraud against the government of federal anti fraud laws is lack of resources on the part of federal enforcement agencies congressional leaders thus acknowledged that in many instances the . The false claims act applies to a fraud on the federal government and has applications from a to z so for example its common for medical providers or doctors to over bill on medicare or medicaid or bill for services that werent provided . Is liable to the united states government for a civil penalty of not less than 5000 and not more than 10000 as adjusted by the federal civil penalties inflation adjustment act of 1990 28 usc 2461 note public law 104 410 plus 3 times the amount of damages which the government sustains because of the act of that person
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