Wash trading is a deceptive practice in financial markets where an investor essentially trades a security back and forth between accounts they control, creating a false impression of market activity. Wash trades can be used to inflate trading volume, making a security appear more popular and potentially driving up the price. They can also be used to generate artificial capital gains or losses for tax purposes, or even to meet certain performance benchmarks for investment portfolios. Financial regulations prohibit wash trading, as it undermines market integrity. The deceptive nature of wash trades makes them difficult to detect, as the individual transactions themselves might appear legitimate. Whistleblowers play a crucial role in exposing wash trading schemes, ensuring more fair and transparent markets, and preventing investors from being misled.