EconPapers    
Economics at your fingertips  
 

Why failure to comply with state contract cyber security and privacy requirements is increasingly likely to result in State Attorneys General enforcement

Ashley L. Taylor, Gene Fishel and Dan Waltz
Additional contact information
Ashley L. Taylor: Troutman Pepper, USA
Gene Fishel: Troutman Pepper, USA
Dan Waltz: Troutman Pepper, USA

Cyber Security: A Peer-Reviewed Journal, 2025, vol. 9, issue 1, 79-87

Abstract: State Attorneys General (AGs) are increasingly leveraging state false claims laws to enforce cyber security and privacy requirements in government contracts. This shift poses significant risks for state and local government contractors, as non-compliance can lead to penalties exceeding the contract’s value. Following the Department of Justice’s (DOJ) success with the False Claims Act and the Cyber Fraud Initiative, State AGs are recognising the potential for substantial revenue and public approval through these statutes. Traditionally used for Medicare and Medicaid violations, state false claims acts are now being applied to a broader range of contractual obligations, including cyber security. Recent DOJ settlements with contractors highlight the serious consequences of non-compliance. Contractors must be proactive in ensuring compliance with cyber security requirements to mitigate the risk of false claims litigation. This involves robust compliance policies, clear communication channels and thorough documentation of efforts to meet contractual obligations. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.

Keywords: state false claims laws; cyber security requirements; privacy obligations; government contractors; qui tam provision; data breach notification; civil cyberfraud initiative; compliance programme (search for similar items in EconPapers)
JEL-codes: M15 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://hstalks.com/article/9648/download/ (application/pdf)
https://hstalks.com/article/9648/ (text/html)
Requires a paid subscription for full access.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aza:csj000:y:2025:v:9:i:1:p:79-87

Access Statistics for this article

More articles in Cyber Security: A Peer-Reviewed Journal from Henry Stewart Publications
Bibliographic data for series maintained by Henry Stewart Talks ().

 
Page updated 2025-07-29
Handle: RePEc:aza:csj000:y:2025:v:9:i:1:p:79-87