Verizon Business Network Settles With DOJ on Alleged Cybersecurity Lapses in Government Contracts

The Department of Justice announced on Tuesday that Verizon Business Network Services has agreed to a $4.1 million settlement to resolve False Claims Act allegations of failure to fully satisfy cybersecurity controls on government contracts.

The claims stemmed from lapses in three cybersecurity controls required in internet connection and other external network contracts that the unit of the Verizon Communications conglomerate entered into with the General Services Administration from 2017 to 2021.

Verizon said that it “proactively identified and disclosed” the cybersecurity problems to the GSA in 2020 and that no security or data breach happened.

The Justice Department also noted Verizon’s cooperation with the government’s investigation of the issue and the business’ prompt and substantial remedial actions.

Investigations on cybersecurity-related violations will continue, according to Michael Granston, the DOJ’s deputy assistant attorney general in the Civil Division’s Commercial Litigation Branch. He added that settlement credit will be granted to government contractors that “disclose misconduct, cooperate with pending investigations and take remedial measures.” 

No determination of liability was included in the settlement, Channel News Asia reported.