Congress enacted the False Claims Act in 1863 without an inkling about today’s vast, internet-based cybersecurity threats. But government agencies appear poised to levy FCA charges against government contractors who aren’t meeting their cybersecurity requirements.
The FCA, in part, holds contractors liable who knowingly submit a false claim to the government or cause another party to provide a false statement to the government. While the law was originally enacted in response to concerns that suppliers to the Union Army during the Civil War were defrauding the government, lawyers contacted by Legaltech News said government agencies will increasingly file FCA charges against government contractors whose cybersecurity practices aren’t matching their contractual obligations.
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