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<h1 class=”page-post-title”>GAO flags hundreds of classified contractor security violations</h1>


 
 <p style=”font-size:smaller; color:#666666; margin-bottom: 1rem;”>A GAO review found DCSA has struggled to keep pace with the required number of industrial security reviews, as its personnel vetting mission expanded.</p>
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 <span class=”Entry-date__date”>April 27, 2026</span> <span class=”Entry-date__time”>5:55 pm</span> </div>

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 <p>The Defense Counterintelligence and Security Agency documented hundreds of data spills, improper storage incidents and other security violations by cleared defense contractors last year, according to the Government Accountability Office.</p>
<p>In a new <a href=”https://www.gao.gov/assets/gao-26-107861.pdf” target=”_blank” rel=”noopener”>report</a>, GAO reviewed DCSA's efforts to ensure defense contractors are protecting classified information. The report comes as foreign entities attempt to steal classified data from industry “thousands of times per year,†GAO states.</p>
<p>DCSA conducted more than 4,600 security reviews in fiscal 2025 and documented 815 security violations, according to GAO.</p>
<p>GAO found that nearly 60% of the violations were “data spills,†while 11.5% were improper storage, 6.5% were access breach or unauthorized disclosure, 6.3% were physical losses and 5.6% were improper physical transfers. The remaining violations were uncategorized or still pending determination.</p><style><![CDATA[
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<p>DCSA reviews last year also identified 1,032 open security vulnerabilities, according to GAO. Those vulnerabilities represent an “identified weakness in a contractor's security program†and show non-compliance with National Industrial Security Program Operation Manual procedures, according to GAO.</p>
<p>DCSA's field operators, in conversations with GAO, also said they were limited in part by the agency's industrial security analytic capabilities</p>
<p>“While DCSA has efforts to assess risk at the national level, identifying and developing enhanced analytic tools for use at the regional level could help position field operators to identify trends unique to their regions and target efforts at highest risk,†GAO's report states.</p>
<p>“Such tools are particularly critical in an environment of constrained resources as they can support the assessment and prioritization of risks,†GAO adds.</p>
<h2>Industrial security challenges</h2>
<p>DCSA is well known for being the agency in charge of personnel vetting, including background investigations for those seeking security clearance.</p>
<p>According to GAO, DCSA officials said that while funding and personnel for other priorities, such as personnel vetting, had increased in recent years, funding dedicated to industrial security “has remained relatively flat.â€</p>
<p>In 2023, DCSA officials found they only had enough funding to conduct oversight of 25-30% of the cleared industrial base, according to a memorandum cited by GAO. DCSA officials at that time proposed new investment options to increase personnel and funding for the industrial security program.</p><style><![CDATA[
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<p>But by September 2025, Defense Department officials in the Office of the Under Secretary for Intelligence and Security reported that they had not pursued any of those options and had not hired additional personnel for industrial security reviews.</p>
<p>Meanwhile, GAO found an initiative that aimed to reduce the workload on regional industrial security officials “has been ineffective.†The National Access Elsewhere Security Oversight Center was established to advise and assist less risky facilities that do not posses classified information or classified IT systems.</p>
<p>“However, we found that DCSA has not comprehensively assessed various aspects of NAESOC. Participants in all 12 focus groups expressed negative reviews of the NAESOC,†GAO found. “Specifically, the participants in focus groups reported on the center's insufficient staffing, limited effectiveness and risk mitigation, and industry dissatisfaction and inadequate responsiveness.â€</p>
<p>Pentagon intelligence leaders also told GAO they are considering changes in policy amid persistent challenges with DCSA's industrial security mission. Officials said they are considering changing both the periodicity of required security reviews and “shifting policy in such a way that military departments would be responsible for conducting more of the industrial security work,†GAO reports.</p>
<p>Still, officials within DoD's intelligence directorate agreed with GAO's recommendations to provide improved analytic tools for filed operators, develop an industrial security risk response plan and comprehensively assess the NAESOC effort.</p>
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