How do kickbacks work?

Kickbacks are illicit payments made to someone in exchange for facilitating a transaction or business arrangement. Typically, one party offers a financial incentive to another party, often a decision-maker or influencer, to gain an unfair advantage or secure a contract. This practice is considered corruption and is illegal in many jurisdictions, as it undermines fair competition and can lead to unethical behavior in business. Kickbacks can occur in various industries, including healthcare, construction, and government contracting.