Summary: Morse Corp Inc., a Massachusetts defense contractor, will pay .6 million to settle allegations of cybersecurity fraud after misrepresenting compliance with federal cybersecurity standards. The lawsuit was initiated by whistleblower Kevin Berich, with the U.S. Department of Justice supporting the case, revealing that the company failed to implement essential cybersecurity controls. The settlement emphasizes the importance of adherence to cybersecurity regulations within defense contracts.
Affected: Morse Corp Inc., U.S. Department of Defense
Keypoints :
- Morse Corp misrepresented its cybersecurity compliance while working with the Army and Air Force.
- The company used a non-compliant third-party service for email hosting and did not implement required cybersecurity controls.
- The settlement includes restitution and legal fees, with whistleblower Berich receiving 18.5% of the total settlement.
- The DOJ warns of serious consequences for defense contractors failing to meet cybersecurity standards.
- This case may result in stricter enforcement and encourage more whistleblowers to report non-compliance.
Source: https://thecyberexpress.com/defense-contractor-morse-corp-settles-fraud/