ASRC Federal Data Solutions LLC (AFDS), headquartered in Reston, Virginia, has agreed to resolve False Claims Act allegations in connection with a government contract related to its storage of unsecured personally identifiable information of Medicare beneficiaries. Under the resolution, AFDS will pay $306,722. It will also waive any rights to reimbursement for remediating a data breach involving the information, including at least $877,578 in costs it incurred notifying beneficiaries and providing credit monitoring. AFDS promptly notified the Centers for Medicare and Medicaid Services (CMS) of the data breach, worked with CMS to address the impact of the breach, cooperated with the Justice Department’s investigation and took other remedial measures.
“Government contractors that handle personal information must take required steps to safeguard that information from cyberattacks,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will vigilantly pursue contractors that fail to comply with required cybersecurity protocols, while at the same time extending cooperation credit where warranted for self-disclosure, cooperation and remediation.”
AFDS provided certain Medicare support services under a contract with CMS. The settlement resolves allegations that from March 10, 2021, through Oct. 8, 2022, AFDS and a subcontractor stored screenshots from CMS systems containing personally identifiable information and...
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