Cybersecurity Startup That Detected a Government Data-Breach is Being Screwed Over

A cybersecurity startup showed the government a data breach, and in turn the government agency disparaged them for their help, and still refuses to pay.

This reminds me of the plot to Die Hard IV... Live Free or Die Hard:

Woops... not that guy... this guy:

He showed the Pentagon how flawed their system was, then they desyored his career, so he tried to destroy America... ouch... talk about a chip on your shoulder. But this isn't the case here, I hope...

CyTech Services went to the federal government's HR department, the US Office of Personnel Management, to sell them their security solutions. In runing their software, they detected a past breach that occured in the network. Eventually the office announced it, and attributed it to Chinese hackers. The data involved personnel records and background checks on over 22 million government employees.

Isn't that a nice way for a foreign government to dig into people and find something to blackmail them with? That's a good thing to be aware of in terms of security and privacy.

Did OPM thank the cybersecurity startup, CyTech, headed by Ben Cotton? No. Instead, they denied he had any involvement in discovering the breach, and even implied he is not to be trusted as a security expert since he talks to the media about alleged work. For security experts, this reputation can be damaging. But even after denying CyTech's involvement, the OPM Director later testified at Capitol Hill that "OPM detected the intrusion."

A later report from the House committee, confirmed OPM had help from CyTech, and that they denied their involvement in a flawed damage-control PR debacle. But also, that they were aware of the breach prior to CyTech's demonstration, so CyTech did not discover the breach, as was contested. CyTech did not leak the news either, so they were vindicated.

Despite the bad rep at first, it's still free advertising, publicity and visibility for a cybersecurity startup. In the end, after tax payer money to investigate, and clear things up, Cotton and his startup are clear from a bad rep.

But OPM still hasn't paid him the $818,000. They are waiting to be forced to pay "by law". Typical government douchebags, dragging things along... The public vs. private sector... battling it out in anthoer arena. Here we have a free market enterprise, offering a service for a fee. The public sector trying to squirm their way out of it through their thieving "laws"...

The startup is doing well, with about 100 employees, and refuses to take outside investor money. They seem to be confident in their future growth without it.

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[Image sources: 1, 2, 3, 4, 5]

[Sources: 1, 2, 3]

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Author: Kris Nelson / @krnel
Contact: [email protected]
Date: 2016-10-30, 5pm EST