Fraudulent billing involves submitting false or misleading invoices for payment. In the context of whistleblowing, this often concerns organizations billing government programs, insurance companies, or even private clients for services that were never performed, inaccurately represented, or priced excessively.

Common tactics include upcoding (billing for a more expensive service), unbundling (splitting a single service into multiple charges), phantom billing (billing for nonexistent services), and duplicate billing (submitting the same invoice multiple times). These practices not only enrich the perpetrator but also divert resources from legitimate purposes and ultimately increase costs for consumers and taxpayers.

The deceptive nature of fraudulent billing often makes it difficult for outsiders to detect, as records or procedures might be manipulated. However, individuals within the organization, such as billing department employees, coding specialists, or those directly involved in providing services, may have firsthand knowledge of these practices. By reporting fraudulent billing, they help protect taxpayers, consumers, and government programs from financial losses. Their actions can trigger investigations, prosecutions, and the recovery of misappropriated funds.