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Compliance to Cybersecurity Requirements and False Claims Act

There’s a growing risk of companies receiving substantial fines for not complying with cybersecurity standards underFalse Claims Act.

However, an emerging concern for businesses that act as contract-based service providers for government entities is that those establishments could also be liable under the False Claims Act (FCA).

What Is the False Claims Act?

The False Claims Act is enforced at the federal level as well as in over two dozen states and the District of Columbia. It stipulates that private citizens can file lawsuits against entities engaging in fraud or dishonesty during certain government transactions.

The citizens that participate in such legal action are called whistleblowers and typically receive between 15 and 25 percent of the recovered amount in a successful suit. Many FCA violations relate to inaccurate billing or falsified information given to government authorities. However, federal contractors can also be held liable for not adhering to the terms...(continued)

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