A Huntsville, Alabama, defense contractor will pay more than half a million dollars to resolve federal allegations that it failed to maintain required cybersecurity protocols while working on U.S. Navy contracts.
LOGZONE Inc. agreed to the $507,144 payout to settle its liability under the False Claims Act. According to federal prosecutors, the company knowingly submitted false claims for payment on two separate Navy contracts while failing to implement mandatory data security controls.
The security gaps were uncovered during an assessment by the Defense Contract Management Agency (DCMA). Investigators checked LOGZONE’s compliance with the National Institute of Standards and Technology (NIST) Special Publication 800-171, which dictates how government contractors must protect sensitive information. The audit resulted in LOGZONE receiving a score of -170. On the official grading scale, scores can range from a low of -203 to a high of 110…