The United States Department of Justice announced that Verizon Business Network Services, a subsidiary of the multinational telecommunications corporation Verizon, has agreed to pay $4.1 million to settle claims that it did not adhere to minimum cybersecurity standards.
The settlement puts an end to charges that a Verizon service that provides federal agencies with secure internet connections and other external networks did not fully satisfy three mandated cybersecurity measures in contracts spanning the years 2017 to 2021. The allegations were resolved as part of the settlement.
“When government contractors fail to follow required cybersecurity standards, they may jeopardize the security of sensitive government information and information systems,” said Deputy Assistant Attorney General Michael Granston in a statement.
According to a statement made by Verizon in 2020, the company “proactively identified and disclosed” to the General Services Administration a potential problem involving a managed security solution that Verizon sells to several departments within the federal government. It was also said that there was never a moment when the possible problem led to a compromise of data or security.
Due to the terms of the settlement, no determination of responsibility was made.
The Department of Homeland Security awarded kudos to Verizon and other companies in settlements with federal contractors who “disclose misconduct, cooperate with pending investigations, and take remedial measures, all of which are critically important to protecting the nation against cyber threats.”