What is a federal false claims act?

The Federal False Claims Act (FCA) is a law that allows individuals to file lawsuits on behalf of the government against entities that commit fraud by submitting false claims for payment or approval. It was enacted during the Civil War to combat fraud by suppliers to the Union Army and has since been amended to address various types of fraud against government programs. Whistleblowers, known as "relators," can receive a portion of any recovered damages, incentivizing them to report fraudulent activities. The FCA also imposes significant penalties on those found guilty of submitting false claims.