Well worth a read. The U.S department of Justice has reached a total of $11.3m in settlements under the False Claims Act, with 2 U.S consulting…

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Well worth a read. The U.S department of Justice has reached a total of $11.3m in settlements under the False Claims Act, with 2 U.S consulting companies, for failing to meet contractual cybersecurity requirements. Are we starting to see more FCA claims focused on cybersecurity compliance by the DoJ? The DoJ launched its Civil Cyber Fraud initiative in October 2021 with a focus on cybersecurity compliance and the FCA (https://lnkd.in/e-f9_N6Y).

In this case the 2 companies Guidehouse Inc and Nan Mckay have been fined for the failure to manage cybersecurity of an application used to manage a Congress established emergency rental assistance program. A failure that led to the PII of certain applicants being compromised.

Federal funding frequently comes with cybersecurity obligations, and contractors and grantees must honor these commitments,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department will continue to pursue knowing violations of material cybersecurity requirements aimed at protecting sensitive personal information.”

Organisations that receive Federal funding, including those outside of the U.S should be aware of the FCA and the potential penalties that can be applied for failing to meet contractual obligations.

@Thaddeus Dziekanowski Brian D. McCarthy Rachel V. Rose, JD, MBA

Veritas GRC U.S. Department of Justice

#cybersecurity #cyberriskmanagement #cyberattacks #falseclaimsact

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