Defense contractor to pay $4.6 million over third-party provider’s security weakness

Summary: MORSE Corp, a defense contractor based in Cambridge, Massachusetts, has settled with the U.S. government for .6 million due to violations of federal cybersecurity requirements. The settlement stems from allegations that the company misrepresented its cybersecurity posture and failed to comply with standards set by the National Institute of Standards and Technology. This case highlights the increasing enforcement of cybersecurity standards under the False Claims Act among federal contractors.

Affected: MORSE Corp, U.S. Army, U.S. Air Force

Keypoints :

• MORSE Corp violated the False Claims Act by failing to meet cybersecurity standards.
• The company used a third-party email provider without ensuring compliance with federal security requirements.
• After conducting inaccurate self-assessments, MORSE acknowledged its failures in the settlement.
• Cyber-related enforcement actions are increasing, with previous fines against various organizations for similar issues.