The Securities and Exchange Commission (SEC) FY2025 Annual Report confirms an overall decline in whistleblower award payments in 2025. WNN reported on this decline in award payouts in October, citing a review of the reported declinations and awards through that point in 2025.
The SEC’s annual report, released on February 11, reveals a sharp drop in the amount of whistleblower awards. It states, “In FY 2025, the Commission awarded a total of more than $60 million to 48 individual whistleblowers.” This $60 million is a significant decrease from $255 million in FY 2024 and $600 million in FY 2023.
The SEC also saw fewer whistleblowers receiving awards. It said, “In FY 2025, the Program utilized numerous tools to increase efficiencies in the claims review process. For example, the Program issued 198 Preliminary Summary Dispositions in FY 2025. The Program also made 114 Preliminary Determinations recommending denials.” The Commission also issued Final Orders denying awards to 275 people. When comparing Final Orders for Whistleblower Award Determinations, only approximately 15.6% of whistleblower awards were granted in 2025, compared to 34.53% in 2024. Most whistleblowers were denied awards, showing a clear drop in award recipients.
The SEC received approximately 27,000 whistleblower tips in FY2025. The most common complaint categories reported by whistleblowers were Manipulation (28%), Offering Fraud (27%), Corporate Disclosures and Financials (11%), and Cryptocurrencies and Crypto Asset Securities (7%). Whistleblower advocates stress that whistleblowers are key actors in preventing economic fraud and in alerting regulatory agencies to criminal economic activity. “Without whistleblowers being incentivized to step forward, these types of financial crimes will continue to go unreported,” says Stephen M. Kohn, Chairman of the National Whistleblower Center.
A majority of the whistleblower tips originated in the U.S., but the Commission also received tips from around the world. In FY 2025, besides the U.S., the countries from which the highest number of tips originated were Canada, the United Kingdom, Italy, Germany, and China.” The SEC is also responsible for rewarding foreign whistleblowers, who, say experts, will similarly be less likely to come forward without a monetary award, negatively affecting the detection of fraud abroad.
If the SEC continues to deny whistleblower awards, whistleblower advocates warn that consequences could follow. Whistleblowers will be less likely to speak up, undermining the program and allowing more fraudulent activity to go undetected. A 2024 report by the Royal United Services Institute found that monetary awards incentivize whistleblowing by increasing the volume of credible information reported, thereby reducing economic crime overall. In addition, providing whistleblowers with large awards acts as a deterrent to companies committing future fraud. Lastly, whistleblowers face immense challenges, such as retaliation and job loss, and rewards must be significant enough to encourage reporting.
