The False Claims Act (FCA) was first passed during the Civil War, but it’s been used most commonly over the past 40 years. It allows citizens to report individuals or organizations who submit some sort of “false claim” and sue them for fraud on behalf of the government.
Like many business owners, you probably find yourself asking a lot of questions when it comes to legal topics like the FCA: What is the penalty for violating the False Claims Act? How does this law apply to technology regulations? What can I do to avoid a violation? We’ve got the answers so you can stay informed, compliant, and safe.
How Is the FCA Relevant to Me?
The FCA is particularly important for any business that has government contracts, is required to submit certifications or reports to authorities, or works with private information. Let’s take a look at the connection between the FCA and some common technology standards.
The National Institute of Standards and Technology (NIST) and the Cybersecurity Maturity Model Certification (CMMC) outline cybersecurity standards and procedures for handling particular data, or controlled unclassified information (CUI). The CMMC involves levels of security, and the required level for a business depends on what kind of data they manage.
Organizations with government contracts or who work with sensitive data must submit certifications and cybersecurity scores showing that they’re in compliance with NIST regulations or the necessary CMMC level. If they violate their contract by not meeting criteria, misrepresent their cybersecurity, or falsify certifications and scores, they can be reported through the FCA.
So, what is the penalty for violating the False Claims Act? In order to administer a penalty, it must be proven that an individual or organization presented a false claim to a government representative or agency, knowing that it was against the law. According to the FCA, these actions can result in up to 5 years in prison and significant fines. ¹
Consequences and exact fines may vary from case to case, depending on the severity of the violation. A defendant could even face criminal charges in addition to the civil penalties, which is why it’s crucial to be aware of guidelines and what your company is doing to follow them.
How Can I Stay Compliant?
These best practices can help you stay in line with regulations and avoid the ill effects of civil or criminal liability.
- Team Education: Hold regular trainings on requirements related to NIST and CMMC compliance.
- Accurate Reporting: Confirm that all compliance reports, certifications, and scores are accurate and run them through the right leadership before submitting them.
- Internal Controls: Use internal controls and audit procedures to verify compliance and identify potential fraud.
- Regular Audits: Conduct regular internal and third-party evaluations to make sure you’re in line with NIST and CMMC standards.
- Compliance Programs: Stay up-to-date on regulations and create systems to detect and prevent suspicious activity.
These processes protect you best when they’re carried out by experienced IT professionals. IT techs are well-versed in compliance and have the skills, tools, and knowledge to help your business avoid complications with the FCA and other laws.
Prioritize Compliance With Brightline
At Brightline IT, we know how easy it is to get overwhelmed with complex compliance laws and security regulations. That’s where we come in. Our team is here to help you understand technology standards and implement procedures to help you meet all of the requirements.
Worried about accidental negligence? Asking yourself, “What is the penalty for violating the False Claims Act?” Give us a call and let’s make a plan for your company’s compliance.
