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Consulting Catastrophe: Guidehouse and NMA Fined $11.3M for Cybersecurity Failures in COVID-19 Relief Rollout
Guidehouse and Nan McKay and Associates are paying $11.3 million for cybersecurity failings during their COVID-19 assistance rollout. Despite the hefty fines, Guidehouse’s $5.5 billion revenue last year makes it a mere slap on the wrist. The whistleblower walked away with nearly $2 million.
Hot Take:
When your cybersecurity game is weaker than wet tissue paper, get ready to pay up! Guidehouse and NMA just learned that the hard way, and the bill is $11.3 million. That’s what happens when you try to wing it on security while handling sensitive data. Oopsie daisy!
Key Points:
- Guidehouse and Nan McKay and Associates (NMA) fined $11.3 million for cybersecurity failings.
- Guidehouse to pay $7.6 million; NMA to shell out $3.7 million.
- An ex-Guidehouse employee whistleblower received nearly $2 million.
- Firms failed to perform required pre-production cybersecurity testing for New York’s ERAP.
- Data breaches occurred almost immediately after the program went live.
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