Increased Cybersecurity Enforcement: The DOJ’s Use of the False Claims Act through the Civil Cyber-Fraud Initiative
In recent years, the Department of Justice (DOJ) has ramped up its efforts to use the False Claims Act (FCA) as a powerful tool to enforce cybersecurity standards across various industries. This approach has been significantly bolstered by the Civil Cyber-Fraud Initiative, which aims to protect sensitive information in the hands of the government and its contractors from cyber threats and ensuring compliance with cybersecurity regulations.
The Civil Cyber-Fraud Initiative: A Historical Overview
The DOJ announced the Civil Cyber-Fraud Initiative in October 2021. This initiative targets entities and individuals who put U.S. information or systems at risk by knowingly providing deficient cybersecurity products or services, misrepresenting their cybersecurity practices or protocols, or violating obligations to monitor and report cybersecurity incidents and breaches.
To address these cybersecurity risks, the Civil Cyber-Fraud Initiative empowers the DOJ and whistleblowers to use the FCA to pursue cases of fraud against the government based on knowing failures to provide sufficient cybersecurity. Under the FCA, whistleblowers (or “relators”) can file lawsuits on behalf of the government and potentially share in any recovery, holding contractors accountable for failing to meet required standards or misrepresenting their compliance.
Recent Settlement Highlights
One of the most notable settlements under this initiative occurred in June 2024. That month DOJ reached an $11.3 million settlement with two consulting companies, Guidehouse, Inc. and Nan McKay and Associates. These contractors allegedly violated the FCA by failing to perform adequate cybersecurity testing for a program designed to provide financial assistance to individuals impacted by the COVID-19 pandemic. As a result of these contractors’ failures, personally identifiable information of individuals that applied for financial assistance was compromised and potentially available on the internet. This case marked a significant milestone, as it underscored the DOJ’s commitment to stringent enforcement of cybersecurity standards.
Assistant Attorney General Brian Boynton of the DOJ’s Civil Division highlighted the importance of this enforcement action and stated: “Federal funding frequently comes with cybersecurity obligations, and contractors and grantees must honor these commitments. The Department of Justice will continue to pursue knowing violations of material cybersecurity requirement aimed at protecting sensitive personal information.”
Legal Support for Whistleblowers: Florin Gray’s Role
As the DOJ continues to focus on cybersecurity enforcement, the role of whistleblowers becomes increasingly critical. Law firms like Florin Gray are pivotal in this landscape, offering consultation and support to clients who have knowledge of cybersecurity failures.
Florin Gray specializes in advising individuals who have identified lapses in cybersecurity measures within their organizations that serve the Federal government. These whistleblowers play a vital role in uncovering fraud and ensuring that entities adhere to required standards. By consulting with knowledgeable attorneys at Florin Gray, whistleblowers can navigate the complexities of the FCA and the Civil Cyber-Fraud Initiative, ensuring their claims are effectively presented and prosecuted.
Conclusion
The DOJ’s increased focus on cybersecurity enforcement through the Civil Cyber-Fraud Initiative represents a significant step forward in protecting sensitive government information. By leveraging the FCA, the DOJ can hold entities accountable for failing to meet cybersecurity standards and misrepresenting their compliance. Recent settlements underscore the seriousness of this enforcement effort.
For individuals with knowledge of cybersecurity failures, consulting with experienced law firms like Florin Gray can provide the guidance needed to bring these issues to light, ultimately contributing to a safer and more secure cyber environment.
Florin Gray remains at the forefront, supporting whistleblowers and ensuring that cybersecurity lapses do not go unchecked. As the DOJ continues its rigorous enforcement, the collaboration between whistleblowers and legal experts will be crucial in maintaining the integrity and security of government information systems.
