The Case Overview
On June 13, 2024, Blackbaud agreed to a $6.75 million settlement, exposing critical vulnerabilities in data protection practices for non-profit organizations.
Key Violations
Blackbaud was found to have:
- Failed to implement reasonable data security measures
- Left old backup databases unsecured
- Did not implement multi-factor authentication
- Made misleading statements about breach extent
- Inadequately protected sensitive personal information
Official Case Documents
- Press Release: California Attorney General Announcement
- Complaint: Full Legal Complaint
- Stipulated Judgment: Settlement Details
Sensitive Information Compromised
- Names
- Social Security numbers
- Bank account information
- Medical information
- Data from multiple non-profit organizations
Financial and Legal Implications
- Total Settlement: $6.75 million
- Joint investigation by Consumer Protection and Healthcare Rights units
- Significant penalties for data security failures
- Comprehensive mandates for future security improvements
Key Compliance Requirements
Blackbaud was required to:
- Improve data security safeguards
- Implement robust protection for personal and health information
- Develop more comprehensive security protocols
- Enhance breach prevention and response mechanisms
Broader Context
The case highlighted:
- Vulnerabilities in cloud-based service providers
- Critical importance of data security for non-profit sectors
- Risks of inadequate cybersecurity measures
- Consequences of misleading breach communications
Key Takeaways
- Data security is a non-negotiable responsibility
- Transparency is crucial in breach response
- Third-party service providers face intense scrutiny
- Multi-factor authentication is now an expectation, not an option