False Claims Act and Cybersecurity


The Department of Justice (DOJ) recently launched a new cyber-fraud initiative to use the False Claims Act (FCA) to ensure Federal Contractors' are compliant with regulatory or contractual cybersecurity requirements.

A contractor can now face liability under the False Claims Act (including treble-damages and penalties) for falsely certifying that it is in compliance with certain cybersecurity standards.  The Department of Justice has appointed a supervisor within the DOJ civil fraud section to oversee this initiative and has signaled it is serious about using the FCA to act against contractors who fail to meet their cybersecurity obligations. 

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