The U.S. Department of Justice is increasing its use of civil fraud laws against companies accused of failing to meet cybersecurity requirements while doing business with the federal government.

The enforcement push has increasingly relied on whistleblowers inside government contractors who report alleged cybersecurity deficiencies or false certifications. Over the past year, eight federal contractors have reached settlements in cases involving cybersecurity compliance, with recoveries ranging from approximately $294,000 to $11.25 million.

The cases are being pursued under the False Claims Act, which allows the government to seek damages when companies are alleged to have falsely represented their compliance with contractual requirements. Whistleblowers can also receive a portion of money recovered by the government, creating an incentive for employees and cybersecurity professionals to report suspected violations.

The growing number of settlements reflects a broader effort by U.S. authorities to treat inadequate cybersecurity not only as a technical or regulatory issue, but potentially as fraud when companies receive government money while allegedly failing to provide promised protections.

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Originally published on Canadian Fraud News.