As U.S. authorities, including the DOJ and SEC, continue to make cybersecurity an enforcement priority, whistleblowers are poised to play a key role in those efforts. Geoff Schweller, a writer at Kohn, Kohn & Colapinto, takes a closer look at the increasingly important function of whistleblowers in cybersecurity enforcement.
The DOJ’s civil cyber-fraud initiative has been increasingly active in making compliance with cybersecurity requirements a False Claims Act (FCA) enforcement priority, and qui tam whistleblowers remain crucial to FCA enforcement. At the same time, the SEC, which in 2023 adopted enhanced requirements regarding material cybersecurity incidents and reporting, relies heavily on its own whistleblower program for its enforcement efforts.
Under the FCA and SEC whistleblower program, individuals with knowledge about companies with deficient cybersecurity products or services or about a company’s failure to disclose a cyber breach are thus empowered to blow the whistle to the government. If their whistleblowing contributes to a successful enforcement action, they may be eligible for a monetary award.
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Source: https://www.corporatecomplianceinsights.com/whistleblowers-leading-role-cybersecurity-enforcement/ Whistleblowers Poised to Play Leading Role in Cybersecurity Enforcement
January 17, 2025
