A defense contractor scores itself at -142 on a cybersecurity self-assessment, then waits nearly a year — and a federal subpoena — before correcting the record. A genomics company sells sequencing systems riddled with software vulnerabilities to federal agencies for seven years. A university research lab conducting sensitive Air Force and DARPA cyber-defense work runs without antivirus software on its desktops and servers.
These are not hypotheticals. They are the fact patterns behind three of the nine cybersecurity-related False Claims Act settlements the Department of Justice secured in fiscal year 2025 — a haul that totaled more than $52 million across nine settlements, and, according to DOJ statistics and practitioner analysis, represents cyber recoveries that have more than tripled over the past two fiscal years.
The acceleration is unmistakable. Since Deputy Attorney General Lisa Monaco launched the Civil Cyber-Fraud Initiative in October 2021, the DOJ has settled at least fifteen civil cyber-fraud cases under the FCA, according to DOJ statistics and practitioner tallies. Nine of those fifteen — 60 percent — were resolved in FY 2025 alone. And the pace has not slowed: in December 2025, the DOJ announced what analysts identified as the first cyber FCA settlement to reach the subcontractor tier of the defense supply chain, when Swiss Automation Inc., an Illinois-based precision machining supplier, agreed to pay $421,234 for failing to protect technical drawings of...
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