Introduction to Cybersecurity and IT Whistleblowing

Cyber whistleblowers disclose unlawful, unethical, or unsafe practices occurring in an organization. Typical examples are:

Privacy invasions and data breaches – Businesses not reporting security incidents or mismanaging customer information.

Insider threats and unauthorized use – Employees or contractors who use cyber systems for personal or financial gain.

Government contract fraud for IT services – Compliance falsification, overpricing, or under-delivery in IT projects funded by the government.

Software weaknesses and negligence – Companies ignoring known security weaknesses that put users at risk.

These violations are detrimental to consumers and could potentially create national security risks when they involve government agencies or critical infrastructure.

Multiple federal statutes safeguard cybersecurity and information technology whistleblowers, thereby enabling them to report infractions securely:

False Claims Act (FCA) – Protects whistleblowers who expose fraud on the government, including IT contract fraud.

SEC Whistleblower Program – Offers financial incentives for blowing the whistle on securities law violations, including cybersecurity breaches that defraud investors.

Sarbanes-Oxley Act (SOX) – Safeguards employees who report corporate fraud, including IT security misrepresentations.

The Cyber Incident Reporting for Critical Infrastructure Act of 2022 (CIRCIA) – Mandates reporting of cyber incidents to governmental bodies by particular corporations. Though it is yet to be implemented, protections for whistleblowers will likely be incorporated once CIRCIA goes into effect.

These provisions offer not only legal protection but, in numerous instances, even financial incentives to promote reporting.

Whistleblowers must take precautions to protect their identity, job security, and legal rights. Key steps include:

Document the Evidence – Gather emails, reports, system logs, or messages that support your claim. Ensure the information is legally obtained.

Maintain Confidentiality – Avoid discussing concerns with colleagues or managers before seeking legal guidance. However, if your company has an internal reporting procedure for cyber concerns, you should exhaust that option.

Use Secure Reporting Channels – Depending on the violation, report to:

• Internal compliance departments
• The Securities and Exchange Commission (SEC)
• The Department of Justice (DOJ) for False Claims Act cases
• The Cybersecurity and Infrastructure Security Agency (CISA) for critical infrastructure breaches

Consult a Whistleblower Attorney – Working with an experienced lawyer ensures you follow the correct legal steps while protecting your rights and securing potential rewards.
By taking these precautions, cyber whistleblowers can report fraud without jeopardizing their careers or personal safety.

Whistleblowers who reveal cybersecurity breaches can earn large amounts of money under federal programs. Under the SEC Whistleblower Program, whistleblowers may receive 10% to 30% of recovered sanctions for revealing cybersecurity fraud that affects publicly traded companies, if the total amount the government recovers exceeds $1 million. The False Claims Act offers similar incentives for IT fraud involving government contracts, allowing whistleblowers to potentially receive 15% to 30% of recovered funds. Several highly publicized whistleblower cases involving tech companies have resulted in payouts in the multi-million-dollar range.

The best tool when reporting cybersecurity fraud is a great legal team. Miller Shah is dedicated to the protection of cyber whistleblowers and has an impressive history of achieving successful outcomes in these cases. We are well-versed in the intricacies surrounding cybersecurity laws, IT fraud, and whistleblower protections, enabling us to provide our clients with the best representation possible.

We provide free and confidential consultation, which enables clients to discuss their legal options without incurring any financial obligation. Our lawyers are committed to zealously defending whistleblowers against retaliation and will advocate for the rights to which you are entitled under federal whistleblower protection legislation. We also offer expert advice on optimizing potential monetary rewards in accordance with whistleblower statutes to help you maximize your potential award.