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This is a video worth watching if you are in the Defense Industry in the UK, EU, and APAC. Those in the US will be aware of the False Claims Act (FCA) and the role it plays in fraud prevention relating to Federal Contracts.
The FCA protects the Federal government from fraud, especially in contracts and other programs that use federal funds. It holds recipients of government funds accountable for fraudulent claims for payment or approval to the federal government.
For those DIB contractors that recognise the role the DoD is developing over cybersecurity (since 2017), the FCA is an Act to pay close attention to. A top use of the FCA is in Defense Contract Fraud. The DoJ is also getting in on cyber and the FCA through its Civil Cyber Fraud initiative.
There is plenty of discussion about the use of the FCA against defense contractors. Contractors are re-evaluating their compliance with DFARS 252.204-7012, now that CMMC is sitting on the Federal Register, coming into effect on the 10th of November 2025. More so, as private citizens, called ‘relators’ or ‘Whistleblowers’, can file lawsuits on behalf of the US government if they disclose fraud.
The big question is this. Is signing a DoD contract from 2017 containing DFARS 252.204-7012, self-attesting compliance with NIST SP 800-171 incorrectly, or failing to comply with DFARS 7012 requirements, a breach under the FCA?
With CMMC soon to be a requirement for DIB contractors to submit formal independent certification of NIST 171 compliance, one suspects we will find out more as the DoD and DoJ go shooting for fish in the barrel, with the help of whistleblowers.
Note: FCA penalties could be 3 times the losses incurred, and for the Federal government, that could be 3 times the contract value. With civil or criminal penalties. So it’s well worth the DoJ and a Whistleblower (who can get 15% – 30% of a successful claim) pursuing.
@Thaddeus Dziekanowski Brian D. McCarthy Faisal Khan B. Stephanie Siegmann James Dempsey
Veritas GRC
#cybersecurity #cmmc
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