A cyber fraud whistleblower is set to receive a $1.9 million award after alleging that a California biotech company, Illumina, knowingly sold multiple government agencies vulnerable software.
The company, which has headquarters in San Diego but was sued in Rhode Island, sold genomic sequencing systems to the agencies. The government alleged — with the help of the whistleblower, a former Illumina employee — that Illumina knowingly sold software with cybersecurity vulnerabilities while representing that its products met government standards. Illumina denied the allegations, and the settlement included no admission of guilt.
But the recent settlement, interesting in itself, also has larger significance: It reflects that the U.S. Department of Justice and other government agencies are ramping up cybersecurity enforcement — and seeking whistleblowers to help. In a DOJ release about the settlement, an acting U.S. attorney Sara Bloom said it “demonstrates our continuing commitment to combat cybersecurity risks by ensuring that federal contractors protect private and sensitive government information.” This is exactly the type of case the DOJ cybersecurity whistleblower program is designed to encourage.
Indeed, the U.S. Securities and Exchange Commission in February established a Cyber and Emerging Technologies Unit, whose dedicated focus could mean greater responsiveness to fintech, AI and crypto whistleblowers.
Importantly, SEC whistleblowers can report wrongdoing anonymously through counsel, with robust protections and the potential for monetary awards for those who offer original information that yields successful enforcement actions.
The Office of the Comptroller of the Currency and Federal Trade Commission also have announced focuses on cybersecurity, according to The Anti-Fraud Coalition. The FTC has been trying to establish a whistleblower awards program similar to the SEC’s.
In sum, this means anyone with credible information about businesses engaged in conduct that poses potential cybersecurity risks — which can create big problems for the United States government — now has multiple whistleblower programs making it a priority.
For potential whistleblowers, it’s critical to engage a skilled cybersecurity whistleblower attorney early in the process. With more than 30 years of combined experience litigating fraud and employment cases — and billions in recoveries for its clients — Keller Grover is uniquely positioned to represent whistleblowers.
If you want to report cybersecurity fraud in your organization, we are here to help. For advice about how to handle suspected fraud, contact Keller Grover for a free and confidential consultation with an experienced cybersecurity whistleblower attorney.