The U.S. Justice Department’s new Civil-Cyber Fraud Initiative announced its first settlement last month in a novel action that brought false claims allegations over infosec failures against, notably, a sole proprietor. The case, which resulted in a nearly $300,000 penalty for the Florida-based web hosting company Jelly Bean Communications Design and its one full-time employee, suggests that the federal government’s clampdown on cybersecurity lapses and misdeeds will spare no offenders, irrespective of size.
The Jelly Bean settlement also underscores the government’s wide array of mechanisms to enforce cybersecurity violations and misrepresentations. It resolves civil charges under the False Claim Act (FCA) for Jelly Bean’s failure to provide HIPAA-compliant website…
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