DOJ’s New Cyber-Fraud Initiative: Looming Wave of FCA Liability?


Many commentators (including us) have been predicting it for years — cybersecurity is the next wave of False Claims Act enforcement. Despite a handful of publicly reported fraud cases involving cybersecurity issues, a wave has yet to materialize. Some wondered if former Deputy Assistant Attorney General Michael Granston’s remarks in December 2020, where he noted that “cybersecurity related fraud is another area where we could see enhanced False Claims Act activity,” could be a watershed moment. A signal of things to come, perhaps, but no wave. However, with a recent announcement from the Department of Justice (“DOJ”), the wave we have been predicting appears to be real and getting closer.