By: Dr. Ross Federgreen, CIPM, CIPP/US, CIPP/G, CIPP/E, CIPP/C, Fellow, European Privacy Association, Fellow of Information Privacy
CEO, CSR Privacy Solutions, Inc.
The danger of being a cybersecurity or Managed Service IT provider just went up substantially. New York as the lead plaintiff with 19 state attorneys joining just received a settlement worth over $6 million dollars from CISCO.
This is the first case that has been settled under the Federal False Claims Act and there are many more to follow.
The suit involved a software that CISCO provided and was sold to numerous Federal, State and other Governmental bodies that was stated to have flaws that allowed digital attacks. Imagine the vulnerability of every entity in the cybersecurity and managed services IT space when they sell software that is found to have vulnerabilities, even after the fact! In this case the defect was identified in 2008 and by 2010 it had not been rectified. A whistleblower under the rules of Qui Tam and the specifics of the Federal False Claims Act went to the government and told them of this vulnerability.
The Federal government shared this with numerous State AG and other officials who introduced the law suit and the results are what has been settled.
Every reseller, VAR, provider in this chain of events could be liable and party to legal action. Can you ever be sure that the cybersecurity and software that you are promoting is free of defects. I do not think so.
What is the answer to this additional attack on your ability to make money and more importantly keep it?
The answer is regulatory compliance. That is how CSR Privacy Solutions has been so universally successful. We sell various SaaS services, which we host that allow companies of all sizes and types to comply with the ever-growing list of Privacy requirements. With over 100 international channel partners we know how to increase our partners revenue in a safe manner that allows them to prosper and thrive.
Come join us and understand how you too can increase revenue with little or no capital investment in a safe long-term environment.
Cybersecurity and Managed Service IT companies must diversify not only from a competitive viewpoint but from the very real threat to your core financial well-being.