The Federal Government Focused on Cybersecurity, Among Other Sectors, in Enforcing the False Claims Act in 2022
While the federal government has relied on the False Claims Act (FCA) to combat fraud across a range of sectors since 1986, in 2022, the Department of Justice set its sights on new enforcement priorities, including fraud in the cybersecurity realm. In October 2021, DOJ announced its Civil Cyber-Fraud Initiative, dedicated to using the FCA to combat new and emerging cyber threats. The initiative utilizes the tools contained in the FCA to hold government contractors liable for providing deficient cybersecurity products or services. Additionally, the initiative seeks to root out misrepresentations of cybersecurity practices or intentional failures to report cyber incidents. The government obtained its first settlement under this initiative in 2022, collecting $930,000. Companies and individuals should expect that this is just the beginning for FCA cases related to cybersecurity. To keep you apprised of the current enforcement trends and the status of the law, Bradley’s Government Enforcement and Investigations Practice Group is pleased to present the False Claims Act: 2022 Year in Review, our 11th annual review of significant FCA cases, developments and trends.