FTC Settles Allegations Against Blackbaud Over Security Practices That Resulted in Data Breach

By Denny Jacob

The U.S. Federal Trade Commission settled allegations against Blackbaud over lax security practices that resulted in a hacker breaching the company's network and accessing consumers' personal information.

The FTC first charged the South Carolina firm, which provides data services and other offerings to companies and nonprofits, in February for failing to implement appropriate safeguards to protect personal data. The regulator said a hacker in early 2020 exploited a weakness in Blackbaud's network that went undetected for three months.

The company waited nearly two months to notify its customers about the breach and then mislead them about the extent of the data that was stolen, which included Social Security and bank account numbers, according to the complaint.

Blackbaud is required to delete data that it no longer needs to provide its products or services and is prohibited from misrepresenting its data security and data retention policies under the order, which includes other requirements.

Write to Denny Jacob at [e-mail]

(END) Dow Jones Newswires

05-20-24 1214ET