False Claims Act

The False Claims Act is a federal law that imposes liability on companies and individuals who defraud the government. In the cybersecurity context, submitting a false or inflated SPRS score, or claiming compliance with NIST SP 800-171 when you know you're not compliant, can constitute a False Claims Act violation.

False Claims Act cases can result in penalties of three times the government's damages plus additional fines per false claim. Several defense contractors have already faced enforcement actions for misrepresenting their cybersecurity compliance status.

Why It Matters

The False Claims Act adds real legal teeth to cybersecurity compliance. Inflating your SPRS score or misrepresenting your security posture isn't just a compliance issue — it's a legal liability that can result in substantial financial penalties and debarment from government contracting.