Call us now:
A very interesting article on cybersecurity, the False Claims Act and use of whistleblower programs. No public or private organisation, including those outside the U.S. that provide products and services to U.S. Federal agencies, should discount the whistleblower regime. Whistleblower programs that are starting to be used, initiating False Claims Act claims as a tool to litigate cybersecurity regulatory compliance.
Under FCA Qui Tam provisions whistleblowers could receive between 15% and 30% of any civil recovery, making it an enticing avenue especially for cybersecurity compliance. Where cybersecurity non-compliance is well known, and in some industries cybersecurity has already been regulated for some time. For example the US Defence Industry Base has been an opportunity for whistleblowers to raise complaints. The Aerojet Rocketdyne trial starts this week under the FCA and whistleblower program, and the DoJ settled a recent FCA claim against CHS medical for $930,000 recently.
The DoJ civil cyber fraud initiative may yet prove to be a lucrative program for the DoJ and whistleblowers given the standards of cybersecurity compliance known to exist following Government audits. It may also present challenges for organisations outside the U.S. that provide products and services to Federal Agencies and are contractually obliged to meet cybersecurity requirements.
Ted Dziekanowski
#cybersecurity #cyberriskmanagement #departmentofjustice #cyberregulation
View Original Post
https://www.linkedin.com/feed/update/urn%3Ali%3Ashare%3A6925024354825056256