Report Any Data Breaches
Cybercrime is estimated to cost U.S. companies up to $2 trillion by 2019. Beyond the financial toll, cyberattacks on Department of Defense (DoD) contractors pose a crucial threat to national security. In an effort to limit the risk, DoD recently enacted stringent rules governing cybersecurity and breach reporting.
Protecting Sensitive Government and Defense Data
The latest Defense Federal Acquisition Regulation Supplement (DFARS), enacted in August 2015, includes the following provisions for DoD contractors:
• Implementation of security measures is required for all computer systems.
• Any occurrence of hacking or other cyberattacks must be reported to the Department of Justice within 72 hours.
This action was prompted by a series of high-profile hacking incidents involving government agencies including the IRS and Office of Personnel Management.
When Cyberattacks Go Unreported
Unfortunately, this regulation has not caused much improvement in breach reporting. One 90-day review revealed 199 instances of suspected leaks, but only 12 agencies reported any breaches.
Failure of DoD contractors to report cyberattacks leaves the door open for whistleblowers via the False Claims Act, which provides for awards of 15-30% of the government’s total recovery against companies found guilty of reporting violations.
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