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SEC Whistleblower Reports Increase by 35 Percent

The number of whistleblower reports coming in to the Securities and Exchange Commission (SEC) has spiked since the pandemic began; the agency has received 4,000 tips, complaints and referrals of possible corporate wrongdoings from mid-March to mid-May, said the Wall Street Journal. This represents a 35 percent increase over the same period last year.

As for why, the Journal posited that it's because so many more people are working from home. For one, people have a lot more time to prepare their reports, and a lot more privacy too. Additionally, the distance from the office and their managers may embolden employees who, before, may have feared retaliation or even just having to step into an awkward situation. Further, as the pandemic rains cruel brutal blows on the economy, some workers might be enticed by the reward that comes with a successful case. This is likely especially so with workers who have been recently laid off or furloughed.

Another factor to consider is that, perhaps, there's just more bad behavior going on. The SEC said that many of the whistleblower referrals relate to COVID-19, such as  one company scamming investors by saying it has begun offering finger-prick COVID-19 tests, and another one falsely saying it has developed a “multi-national public-private-partnership” to sell thermal scanning equipment to detect individuals with fevers.