Cybersecurity compliance is no longer just a best practice—it's a legal necessity. Just look at the recent Georgia Tech.
on August 22, 2024, the United States government filed a lawsuit against Georgia Tech for failing to meet compliance standards. Georgia Tech is accused of not fulfilling the cybersecurity requirements outlined in its contract with the federal government.
The lawsuit alleges that Georgia Tech lacked sufficient security controls and failed to properly implement and oversee these controls, potentially putting sensitive government data at risk. This case is significant because it represents one of the first instances where the government has pursued legal action over a failure to meet cybersecurity standards, setting a precedent that could have far-reaching implications.
If you're a managed service provider (MSP), the implications of this case should have you rethinking your approach to cybersecurity and compliance.
The Crackdown has Begun
The federal government has been inching closer to taking definitive action on cybersecurity compliance.
- First, it was about promoting better cyber insurability, urging businesses to adopt robust cybersecurity measures to qualify for insurance coverage.
- Then came the Cybersecurity Maturity Model Certification (CMMC), an effort to standardize cybersecurity practices among companies that do business with the Department of Defense.
- Now, with the Georgia Tech lawsuit, we're seeing a new tactic: enforcing compliance through breach-of-contract lawsuits.
What Happened with Georgia Tech?
Georgia Tech is accused of failing to meet the cybersecurity requirements outlined in its contract with the federal government. The allegations include insufficient security controls and a lack of proper implementation and oversight, which could have potentially exposed sensitive data to cyber threats. This case marks one of the first times the government has pursued legal action against a contractor for not fulfilling its cybersecurity obligations, and it's sending a clear message: the days of half-hearted compliance are over.
What Does This Mean for MSPs?
If you're an MSP, this lawsuit isn't just a cautionary tale; it's a roadmap for what could happen if you don't take cybersecurity seriously. Your clients rely on you to protect their data and ensure compliance with all relevant regulations. If you're not meeting these obligations, they could face legal consequences—and so could you.
The Georgia Tech case should serve as a wake-up call for you. It’s time to validate your cybersecurity controls rigorously. It's no longer enough to simply have security tools in place. You’ve got to prove they’re effective.
Here’s what you should be doing right now:
- Validate Your Controls: Regularly test your security controls to ensure they are functioning as intended. This includes everything from firewalls and antivirus software to more advanced measures like intrusion detection systems (IDS) and security information and event management (SIEM) tools.
- Conduct a Comprehensive Assessment: Get a thorough assessment of your network and your clients’ networks. An assessment will help identify any vulnerabilities or gaps in your security posture that need to be addressed.
- Document and Provide Evidence: Ensure you have detailed documentation that shows your security tools are not only implemented but also actively monitored and maintained. This evidence is crucial if you need to prove to a client—or in court—that you’re meeting your cybersecurity obligations.
- Stay Ahead of Whistleblowers: The Georgia Tech lawsuit was initiated by a whistleblower. If someone on your team, or within your client's organization, feels that cybersecurity isn’t being taken seriously, they could blow the whistle. By maintaining rigorous cybersecurity practices, you mitigate this risk.
While the Georgia Tech case is a government action, don’t think for a second that private businesses aren’t watching closely. If the federal government is willing to sue over cybersecurity lapses, it’s only a matter of time before private companies start following suit. As more organizations begin to realize the legal and financial risks associated with poor cybersecurity, you can expect to see a wave of similar lawsuits in the private sector.
The Bottom Line
Cybersecurity is no longer a checkbox—it's a critical aspect of doing business, especially for MSPs. With the federal government setting a precedent for suing over cybersecurity breaches, it’s clear that the stakes are higher than ever. Don’t wait for a whistleblower to call you out or for a client to question your practices. Start validating your controls, documenting your efforts, and proving that your cybersecurity measures are effective today.
We can help as a third party to validate your client’s security controls, and mitigate your MSPs liability.
