ABSTRACT

This chapter discusses the background, use, and value of hotlines. Fraud hotlines are confidential reporting mechanisms for employees and third parties to report fraud, waste, and abuse occurring in all organizations. In basic terms, fraud hotlines aim to detect and prevent organizational fraud. A fraud hotline is a confidential reporting method. Fraud hotlines have been used in the government sector since the late 1970s, following the Civil Service Reform Act (CSRA) of 1978. Today, nearly all federal agencies operate hotlines to receive reports pertaining to fraud, waste, and abuse on the part of their respective organizations. The research literature supports the use of hotlines as an ideal method of receiving organizational fraud tips. The bureaucracy literature suggests that agency bureaucracy may adversely affect a hotline in several ways. The federal government highly values its fraud hotlines and encourages tipsters to come forward. Federally operated hotlines may share their data with the public, often through their Office of Inspector General.