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Trend to Watch in 2025: Fraud by Falsely Claiming Cybersecurity Credentials for Defense Contracts

Nov 15 2024

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Keller Grover / News / Consumer Protection / Data Breach News / Trend to Watch in 2025: Fraud by Falsely Claiming Cybersecurity Credentials for Defense Contracts

Surging cybersecurity threats will demand the help of whistleblowers in the coming year.

The topic may sound technical or even boring, but you notice more than you think you do. Cyber attacks cause major hiccups in everyday life — and billions of dollars are at stake. This year, cybersecurity breaches have resulted in compromised Social Security numbers, grounded flights, and health care system disruption, as well as threats to our federal government’s operations.

While many of these cybersecurity issues are ongoing, we’d like to highlight an emerging hot topic: cybersecurity in the U.S. Department of Defense. 

A looming threat

Bear with us — this is worth the journey.

The Defense Department recently announced new cybersecurity requirements, calling it a top priority because of increasingly frequent and complex cyberattacks. That’s a big deal: In terms of federal contracts, the DOD outspends all other agencies combined.

A cybersecurity certification program, which takes effect Dec. 16, is intended to protect the sensitive yet unclassified information that the DOD shares with contractors and subcontractors. If a company wants to win almost any contract with the DOD, it must comply with new cybersecurity requirements.

Sounds straightforward.

But obtaining that certification could cost a collective $39 billion during the next decade for the tens of thousands of companies covered by the rule. That creates a financial incentive for contractors and subcontractors to cut corners (i.e. commit fraud) on this crucial safeguard.

And there’s another risk: The DOD doesn’t have a great track record of holding its partners accountable. In a recent audit, it was unable to account for roughly $2 trillion worth of assets.

Wanted: Vigilant allies

Given this cascade of potential problems, the government — and its people — will need help from whistleblowers to guard against vulnerabilities and potential severe consequences. The financial fallout of cyberattacks surely would dwarf the $39 billion in compliance costs over 10 years.

Statista estimates that, in 2025 alone, the global cost of cybercrime will hit $10.3 trillion.

When whistleblowers alert the government to inadequate cybersecurity measures, those gaps can be fixed quickly and easily — before costly catastrophes. 

As we move into 2025, if you suspect a DOD contractor or subcontractor of intentionally cutting cybersecurity corners, contact Keller Grover for a free and confidential consultation. We work with potential whistleblowers from the very beginning to find the best path forward, helping minimize the impact of reporting, protect rights, pursue potential whistleblower awards, and achieve the optimal outcome.

For individual victims of cyber-scams, please visit the FBI’s Internet Crime Complaint Center for more information.

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