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Monday, May 18, 2026

What Does the DOJ’s New Civil Cyber-Fraud Initiative Mean for You? - JD Supra

As discussed in a previous post, the Department of Justice (DOJ) has announced a new Civil Cyber-Fraud Initiative to utilize one of the strongest tools in its toolbox—the False Claims Act—to hold entities receiving federal dollars accountable where it believes they are failing to meet their cybersecurity obligations.

Who should be aware of this initiative?

The reach of the False Claims Act is extremely broad. Anyone who tells the government that they are abiding by cybersecurity standards to receive money from the government can be a potential defendant in a False Claims Act suit. These statements can come in several forms. For example, a company may say that it is abiding by industry standards or has adopted reasonable cybersecurity protocols in its bid to procure a government contract, or the company may make such a statement in the contract itself.

For example, in a case out of the Eastern District California discussed in a previous post, a former cybersecurity director for Aerojet brought a False Claims Act case alleging that the company failed to comply with its cybersecurity obligations under its Department of Defense and NASA contracts, and it continued to seek government contracts after it became aware of its noncompliance. Depending on the industry, a company might also certify through cost reports, claim submissions, securities disclosures, contracts, or other forms that it abides by applicable statutes and regulations, including applicable privacy and security...



Read Full Story: https://www.jdsupra.com/legalnews/what-does-the-doj-s-new-civil-cyber-7984064/