The SEC alleged: "From May 2020 through May 2021, in press releases, earnings calls, interviews, and other statements, Intrusion, through the Former CEO, made materially false and misleading statements regarding: (a) the Former CEO's background and experience; (b) the Company's success in marketing Shield to participants in its beta testing program; and (c) certain Company contracts, or purported contracts, with prospective customers. Intrusion's conduct violated the antifraud, current reporting, and disclosure controls and procedures provisions of the federal securities laws."

On September 26, 2023, the SEC stated that: "[It] filed a complaint against Intrusion Inc. ("Intrusion") for making false and misleading statements in 2020 and 2021, primarily through its former CEO, regarding the company's purported success in marketing a cybersecurity product, the terms of multiple contracts, and the background and experience of its former CEO. Intrusion has agreed to settle the SEC's charges."

On October 5, 2023, the Court issued a final judgment against Intrusion Inc., stating: "The Securities and Exchange Commission having filed a Complaint and Defendant Intrusion Inc. having entered a general appearance; consented to the Court’s jurisdiction over Defendant and the subject matter of this action; consented to entry of this Final Judgment without admitting or denying the allegations of the Complaint (except as to jurisdiction); waived findings of fact and conclusions of law; and waived any right to appeal from this Final Judgment."