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For those companies and staff working in digitial and cybersecurity this is an important read, especially if you deliver services to Federal Government. The U.S Department of Justice announced an individual has been charged with major fraud against the United States for making false statements to the Securities and Exchange Commission (SEC). In a scheme to deceive the SEC into thinking the defendants data center was certified when it did not appear to be the case.
This case is interesting for several reasons, the first being one of allegedly falsifying records of security compliance and audit. The second being one of charging the SEC for services that may have been in breach of Federal contracts. Federal contracts that one assumes were under FISMA requiring third party vendors to comply with cybersecurity practices. Practices that may not have been adhered to if the certificate of data center compliance was false.
One wonders if this is a breach under False Claims Act (FCA). One sees an increasing number of cases coming to trial under the FCA focused on cybersecurity. One assumes the the DoJ is building up its Cyber Civil Fraud Initial program, announced in 2021.
@Thaddeus Dziekanowski Brian D. McCarthy Rachel V. Rose, JD, MBA Faisal Khan
Veritas GRC
#cybersecurity #cyberriskmanagement
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