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Unmasking cyber fraud among government contractors

On Behalf of | Aug 5, 2024 | False Claims Act, Qui Tam Cases

Cyber threats and attacks are among the U.S. government’s most pressing issues today. Despite steady progress, challenges like ransomware and spyware continue to persist. The Civil Cyber-Fraud Initiative is one strategy that addresses these issues. It uses the False Claims Act to expose government contractors and grant recipients who put U.S. information systems in danger.

Tech and cybersecurity whistleblowers play a crucial role in this effort. They help make sure these groups are held accountable for:

Failure to secure personal information

Data breaches happen more often when organizations don’t keep their software systems up to date. Sensitive info, like personal health records or identifying details, can be misused for scams. Not reporting these breaches breaks federal and state laws, like the Cyber Incident Reporting for Critical Infrastructure Act of 2022 (CIRCIA) and the Stop Hacks and Improve Electronic Data Security Act (SHIELD Act).

Misrepresentation of cybersecurity compliance

Some entities may request payment or other benefits from the government, claiming that they have strong cybersecurity measures in place. But it becomes a big problem if they are not actually as secure as they claim. Not only does it waste public funds, but it also makes us vulnerable to attacks.

Inadequate fraud controls

Sometimes, organizations lack proper oversight or internal controls to catch fraud. This can make them vulnerable to fake claims, which could lead to processing fake claims for fees, loans, or other transactions. If they continue to use weak cybersecurity controls, sensitive information could be at risk.

Whistleblowers play a key role in our national cybersecurity

Early detection is crucial. Tech and cybersecurity workers are the first to see the vulnerabilities and unethical practices that expose our data to risk, and they are usually the first to hold them accountable in court. In cases like these, make sure to seek legal counsel.