The Department of Justice has announced an initiative to pursue civil False Claims Act enforcement actions against government contractors that knowingly fail to follow required cybersecurity standards and reporting requirements—the latest indication of the heightened risks of noncompliance with cybersecurity-related obligations for contractors. The DOJ will utilize the FCA to “hold accountable” entities or individuals that put U.S. information or systems at risk by knowingly: (1) providing deficient cybersecurity products or services; (2) misrepresenting their cybersecurity practices or protocols, or (3) violating obligations to monitor and report cybersecurity incidents and breaches.
This update provides an overview of DOJ’s initiative, which highlights the role of the FCA in prosecuting companies and individuals that knowingly violate cybersecurity requirements.
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