U.S. Steps Up Civil Cyber-Fraud Cases

Hello. The Justice Department is urging whistleblowers to report instances of companies engaging in potential cyber fraud. Eight cases of federal contractors flouting cybersecurity rules were settled last year, and more are expected.

Insiders have come forward as whistleblowers, including a director of engineering, a director for platform management, and cybersecurity team members. Dollar recoveries have ranged from $293,771 to $11,253,400.

Read 10 takeaways from these cases at Dow Jones Risk Journal (gift link).

Please note: The WSJ Pro Cybersecurity newsletter won’t be published Monday in observance of the Labor Day holiday in the U.S. We will be back Tuesday.

OpenAI plans to provide $1 billion worth of subsidized access to AI tools and services to electricity providers and other critical infrastructure worldwide to improve their cybersecurity protections. Also as part of the program, called Daybreak, the company said it would work with the Multi-State Information Sharing and Analysis Center to train local governments on using AI for security. (Axios)

Pentagon cyber strategy: The U.S. Defense Department is expected to release its cyber plan as early as Tuesday, NextGov reported, citing people familiar with the matter. The plan is due to outline how the Pentagon will integrate cyber tactics into military strategy, emphasizing offensive actions, and address training requirements. The most recent Defense Department cyber strategy was issued in 2023.

Zscaler posted a narrower loss after revenue rose 25% in its fiscal fourth-quarter, as AI helped drive demand for its cybersecurity offerings. The San Jose, Calif.-based company said it would restructure and cut 3% of its workforce as it reallocates resources to support its AI and growth initiatives. Zscaler on Thursday reported a loss of $3.37 million compared with a loss of $17.6 million a year earlier. (WSJ)

🎧 On this week’s podcast: The Trump administration is targeting Banque Misr’s U.A.E. operations as it pressures institutions that provide Iran with access to the global financial system. Also, a federal judge brings New York’s new climate superfund law to a grinding halt.

New episodes every Friday on Apple Podcasts, Spotify and Amazon.

The WSJ Pro Cybersecurity team is Deputy Bureau Chief Kim S. Nash and reporters Angus Loten and James Rundle. Follow us on X @WSJCyber. Reach the team by replying to any newsletter you receive or by emailing Kim at kim.nash@wsj.com.