Cisco Systems agreed to pay $8.6 million to the government. The company sold flawed video surveillance technology to both federal, state and local government agencies. The notable thing here is that Cisco was aware of this flaw before selling it to the government bodies.
Cisco will pay the civil damages for all the government agencies. This includes Homeland security, the Army, the Navy, the Secret service, the Marines, the Federal Emergency Management Agency, and the Airforce. This list of government agencies was present in the government’s complaint.
Fifteen States Filed Case Against Cisco
Cisco is well known for its software and equipment. The company deals with so many giant companies across the world. Fifteen states from the US filed a complaint in Federal District Court regarding the flawed software. The case was about the False Claims Act. It addressed misconduct and fraud in federal government contracts.
The government mentioned that the video surveillance camera that they brought from Cisco is of no value. The software wasn’t able to provide the primary purpose for which they brought it.
The software was to enhance the security for agencies. But it behaved otherwise. Cisco software reduced protection. The software vulnerability was identified back in 2008 by James Glenn. James Glenn worked in Cisco and he was a whistleblower in this case. He discovered that he can hack into the video with ease.
He informed his higher officials about this issue and told them that anyone can hack into the video surveillance system and manipulate it as they want. The company laid off Mr Glenn stating that it is a part of the cost-cutting process just after five months.
Later in 2010, Mr. Glenn tried hacking into the video surveillance again and he was successful this time too. Hence, he approached the FBI and told them everything about it.