Category Archives: False Claims Act

Federal cyber chief: Supply chain security against foreign influence needs work

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Although the U.S. government is working to prevent foreign telecommunications firms like Huawei from building 5G networks in the U.S. and abroad, there are still few answers on how to secure the government’s technology supply chain, according to federal Chief Information Security Officer Grant Schneider. “Could [a company] come under the influence of a foreign adversary in any way shape or form? Is there quality where we need it to be? … How do we ensure their supply chain and the parts that they’re taking in and putting inside their box are actually the parts they’re expecting?” Schneider said at the Fortinet Security Summit, produced by FedScoop and StateScoop. “I don’t think we have an answer on what are the solutions to all those [questions.]” The administration also isn’t clear yet on whether the government itself should be assessing which contractors are meeting requirements, or whether that assessment should be completed elsewhere, according to Schneider. “As we look at […]

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Cisco will pay $8.6 million to settle claims it sold US flawed surveillance software

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Technology giant Cisco has agreed to pay $8.6 million to settle allegations it knowingly sold video surveillance equipment with security vulnerabilities to federal, state and local government agencies, according to court records unsealed Wednesday. A company whistleblower first informed Cisco in 2008 that a bug in its surveillance software could have enabled hackers to monitor video footage, delete footage and turn on or disable the systems. Government entities including the U.S. Secret Service, the Federal Emergency Management Agency and the New York Police Department had purchased the software, according to the Washington Post, which first reported the news. Cisco’s settlement appears to be the first whistleblower resolution of the False Claims Act, which prohibits defrauding the government, regarding cybersecurity issues. “The tech industry needs to fulfill its professional responsibility to protect the public from their products and services,” whistleblower James Glenn said in a statement. “There’s this culture that tends […]

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Cisco ‘Knowingly’ Sold Hackable Video Surveillance System to U.S. Government

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Cisco Systems has agreed to pay $8.6 million to settle a lawsuit that accused the company of knowingly selling video surveillance system containing severe security vulnerabilities to the U.S. federal and state government agencies.

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Court Allows Cybersecurity Fraud Case Under Federal False Claims Act

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Claim alleges aerospace company committed fraud under the False Claims Act because it failed to meet information security requirements A California federal court in May permitted a lawsuit to go forward alleging a government contractor’s failure to ad… Continue reading Court Allows Cybersecurity Fraud Case Under Federal False Claims Act→

Fortinet settles charges of selling intentionally mislabeled Chinese-made tech to U.S. military

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Security vendor Fortinet has agreed to pay the equivalent of $545,000 to settle allegations it illegally sold the U.S. military Chinese technology disguised as American-made equipment, the U.S. Department of Justice announced. The Sunnyvale, California-based cybersecurity company agreed to pay the government $400,000 and provide the U.S. Marine Corps with equipment valued at $145,000 to resolve charges it violated the False Claims Act from January 2009 until the fall of 2016, according to a statement. Fortinet acknowledged that an employee responsible for supply chain management altered labels on products to make them appear compliant with the Trade Agreements Act, a law prohibiting federal agencies from acquiring products in specific countries. The unnamed employee directed others at Fortinet to include the phrases “Designed in the United States and Canada” or “Assembled in the United States” before those products were sold to distributors and resellers who resold the technology to the government. “Contractors […]

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