Wall Street’s New Side Hustle Beats Insiders (Literally)

There’s a new trend that’s sweeping Wall Street - and no, it's not the latest meme stock or some new crypto fad. It’s a unique side hustle that experts call  “Whistleblowing”. Say what? 

(Source: Pinterest) 

Yes you read that right…  forget trading stocks or trying to predict the next Nvidia; it seems like the real money on Wall Street these days is in blowing the whistle on those oh-so-secret shady deals that really drive the wedge between retail investor and institutional investor success.

(Source: Statistica) 

Now while you may be scratching your head about all of this… stay with me - because it's apparently a real money maker for those who pony up the kahuna’s to rat on their friends across the street. 

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For instance, just last year, the SEC (that's the Securities and Exchange Commission for those who aren't up to speed in financial literacy) handed out a record-breaking $279 million to a (wait for it) SINGLE whistleblower. How’s that for a financial integrity award? That’s more cash than most of us will ever see in our lifetimes. 

(Source: Wall Street Journal) 

But it’s the reason why in 2023 alone, the SEC received over 18,000 tips from whistleblowers who were trying to make an extra buck for tattling on their companies, co-workers, or enemies on Wall Street. 

Simply put, regardless of what people's opinion of insider trading is, it’s no secret that this is a growing side hustle in the world of finance. Why? Because it’s not only extremely lucrative but the SEC offers rewards ranging from 10% to 30% of the money collected when sanctions exceed $1 million. 

And given that the SEC raked in over $4.1 billion in penalties last year, it’s no surprise people are seeing dollar signs.

(Source: Imgflip) 

However, it’s not just last year's numbers that are setting the bar for 2024. The SEC’s whistleblower program has been so successful that since its inception in 2011, it’s paid out more than $6.3 billion to these corporate tattletales. Thats billion with a “B.” 

It’s like Wall Street has turned into a giant episode of “Who Wants to Be a Millionaire?” and everyone’s phoning a friend at the SEC.

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I mean seriously, imagine a trader sipping their oat milk latte, casually scrolling through TikTok, and suddenly realizing they are sitting on information that could net them more money than they would ever make in a decade on Wall Street. 

What do you think sounds more attractive and not to mention easier? Placing a large risky bet on Nvidia call options or picking up the phone to throw Joe at Goldman under the bus?

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Hilarious? 100%. Lucrative? Mother flippin' yea. 

Now I’m sure that for some there is a certain appeal to being the hero (or anti-hero) who brings down the bad guys. But it’s all anonymous.  The SEC goes out of its way to protect whistleblower identities, so people can drop a tip and then go back to their day job without worrying about becoming the office snitch.

Of course, even with the SEC protecting your 6 after you just gave them a full course buffet of legal actions, Wall Street's new whistleblowing side hustle doesn’t come without its risk. Think Boeing: 

(Source: Reddit) 

If anyone found out, retaliation is a real concern, and while the SEC has some protections in place, it’s not foolproof. Meaning as this trend continues we could end up seeing a large exodus of Wall Street traders due to this growing money grab… so if you’re good with stocks there may be a job opening for ya soon. 

But in the end, it’s kind of hilarious to think that while Wall Street traders are busy trying to beat the market, a growing number are turning their focus to whistleblowing as a side hustle. It’s like the ultimate plot twist in a financial drama. Who knew that the real money-maker might just be outing your company’s dirty laundry?

(Source: Giphy) 

So what’s the takeaway? Nothing really other than interesting financial humor.

But hey next time you’re stuck in a meeting about quarterly earnings, just remember: somewhere out there, a whistleblower could be laughing all the way to the bank. And who knows? Maybe that could be you. 

Stocks.News has no positions in companies mentioned in the article.