Manatt Investigations, Compliance and White Collar Defense Partner Randy Grossman, Privacy and Data Security Partner Kareem Salem and Litigation Associate Kayla LaRosa wrote an article for Business Crimes Bulletin about the Department of Justice’s (DOJ) Cyber-Fraud Initiative and how it’s impacting cybersecurity standards and practices.
To combat a wide range of illegal cybersecurity conduct from government contractors and grant recipients, the DOJ has been deploying their Initiative, which leverages the False Claims Act to protect and incentivize whistleblowers. Since violations against the DOJ’s Initiative could result in substantial costs, according to the authors, companies should consider ways to strengthen their cybersecurity procedures by comprehensively reviewing cybersecurity protocols and providing employees with training, for instance. “By leveraging the FCA, DOJ has used a powerful enforcement tool to target a wide range of cybersecurity failures and misrepresentations. It signals a shift towards greater accountability and transparency in corporate cybersecurity practices,” the authors wrote.
Business Crimes Bulletin subscribers can read the full article here.