On February 28, the U.S. Department of Justice (DOJ) agreed to a $930,000 settlement with Comprehensive Health Services (CHS) to resolve False Claims Act allegations. The resolution represents the department’s first settlement under the False Claims Act since instituting its Civil Cyber Fraud Initiative in October 2021.[1] This is a watershed moment in the department’s approach to cybersecurity that highlights its renewed focus and commitment to holding vendors that do business with the federal government accountable for meeting federal cybersecurity requirements.
Civil Cyber Fraud Initiative
In October 2021, the department announced the launch of its Civil Cyber Fraud Initiative, which seeks to combine the department’s expertise in civil fraud enforcement, government procurement, and cybersecurity to combat new and emerging cyber threats to the security of sensitive information and critical systems. The department touted this initiative as a direct response to the lack of disclosure and reporting by government contractors when faced with breaches. “For too long, companies have chosen silence under the mistaken belief that it is less risky to hide a breach than to bring it forward and to report it,” said Deputy Attorney General Monaco. Specifically, the initiative seeks to hold government contractors accountable when they fail to follow the federal government’s cybersecurity requirements.
The initiative targets companies and individuals that place U.S. information or...
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